Hecla Mining reaffirms premium value of proposed acquisition of Aurizon Mines

theflyonthewall.com

Hecla Mining Company (HL) has reaffirmed the premium value of its proposed acquisition of Aurizon Mines Ltd. (AZK) announced on March 4, pursuant to an arrangement agreement with Aurizon. Hecla also cautioned Aurizon shareholders that its largest shareholder Alamos Gold (AGI) is attempting to increase its ownership position to a level that would prevent Aurizon shareholders from accepting a higher price. “Alamos continues to try to distract Aurizon shareholders from the simple fact that the Hecla Arrangement is currently valued at $0.31 per share more than the Alamos offer, which is valued even lower than the current share price of Aurizon. About two thirds of Hecla’s offer is available in cash, Alamos’ is less than half,” said Phillips S. Baker Jr., Hecla’s President and CEO. “Alamos’ avowed attempt to block the Hecla arrangement by increasing its minority position to a blocking position rather than letting shareholders decide, illustrates the weakness of Alamos’ offer. We believe that Aurizon shareholders will prefer a higher price, more cash and an interest in Hecla to Alamos’ lower price, less cash and an interest in a company with assets outside Canada and the U.S. We join the Aurizon board in urging Aurizon shareholders not to tender to the Alamos transaction.”

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