Hecla′s Agreement to Acquire Aurizon is Superior for Aurizon Shareholders
Hecla Mining Company (NYSE:HL)
(Hecla) (Company) today reiterated the superiority of its agreed-upon
transaction with Aurizon Mines Ltd. (TSX:ARZ) (NYSE:AZK) (Aurizon),
announced on March 4, 2013, and strongly urges shareholders to reject
the Alamos offer.
President and Chief Executive officer, Phillips S. Baker, Jr. said, 'Our
offer is superior to the Alamos offer by CAD$0.27, based on yesterday′s
closing prices, and includes a 68% higher cash component. Tendering to
the Alamos offer risks depriving Aurizon shareholders of the premium our
offer represents as well as the significant upside we see in a
Hecla-Aurizon combination. ?As a North America focused precious metals
producer, we believe ?the combined company will deliver increased value
well into the future.'
Hecla′s arrangement agreement is superior to the unsolicited Alamos
offer for many reasons, included but not limited to:
Implied value is superior ? Implied value of Hecla′s offer of
CAD$4.55, based on closing prices on March 4, 2013, represents a
CAD$0.27 premium to the current implied value of Alamos offer of C$4.28
Larger cash component ? Hecla′s agreement has a 68% higher cash
component than the Alamos offer
Superior business logic ? the combined company will have low cost
operating mines with long lives in mining friendly jurisdictions
Reduced operating risk ? 120 years of mining experience, most of it in
underground mines similar to Casa Berardi
Growth opportunities ? enhanced exposure to exploration and
pre-development projects
Separately, Aurizon today reiterated its recommendation that
shareholders support the Hecla transaction and do not tender into the
Alamos offer or withdraw tenders already made. Aurizon urged
shareholders who have tendered to immediately withdraw tendered shares.
Mr. Baker continued, 'We believe that the combination of Aurizon and
Hecla provides the best opportunity for operational synergies and the
creation of lasting value for shareholders. The new company will have
three long life low cost assets in mining friendly jurisdictions. We
have followed Aurizon and Casa Berardi for the past 7 years and believe
strongly in the asset, its exploration upside, and the benefits of where
the project is located. We invite the Aurizon shareholders to join us as
we build a leading diversified silver and gold producer.?
About Hecla Mining Company
Hecla Mining Company (NYSE:HL) is a leading low cost U.S. silver
producer with operating mines in Alaska and Idaho, exploration and
pre-development properties in four world-class silver mining districts
in the U.S. and Mexico, and an exploration office and investments in
early-stage silver exploration projects in Canada.
Additional Information and Where to Find It
This ?material ?relates to Hecla′s proposed acquisition (the
'Transaction?) of Aurizon. Shares of Hecla′s common stock (the 'Hecla
Shares?) issued in connection with the proposed Transaction may be
registered pursuant to a registration statement to be filed with the SEC
or issued pursuant to an available exemption. This information is not a
substitute for any registration statement or any other document that
Hecla may file with the SEC or ?that it or Aurizon may send to ?their
respective shareholders in connection with the offer ?and/or issuance of
Hecla Shares. Investors are urged to read ?any ?registration statement, if
and when filed, and all other relevant documents that may be filed with
the SEC ?or with Canadian regulatory authorities ?as and if they become
available because they will contain important information about the
issuance of Hecla Shares.Documents, if and when filed ?with the
SEC, will be available free of charge at the SEC′s website (www.sec.gov).
You may also obtain these documents by contacting Hecla′s Investor
Relations department at Hecla Mining Company; Investor Relations;
1-800-HECLA91 (1-800-432-5291); hmc-info@hecla-mining.com.
This release does not constitute an offer to sell or the solicitation of
an offer to buy any securities.
In connection with the proposed transaction, ?Aurizon ?will file ?proxy
soliciting materials ?with the SEC ?and/or Canadian regulatory
authorities. The information contained in ?any such filing ?may not be
complete and may be ?updated, amended or ?changed. SHAREHOLDERS ARE URGED
TO READSUCH MATERIALS ?WHEN AVAILABLE AND ANY OTHERRELEVANT
MATERIALS FILED WITH THE SECAND/OR CANADIAN REGULATORY
AUTHORITIES ?CAREFULLY IN THEIR ENTIRETY BEFORE MAKING ANY
VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUTTHE
PROPOSED TRANSACTION AND THE PARTIES THERETO.
Proxy solicitation ?materials will be mailed to ?Aurizon′s ?shareholders
seeking their approval of the proposed transaction. Anyone ?may also
obtain a copy of ?such materials free of charge once available by
directing a request to: Hecla Mining Company 6500 N Mineral Drive, Suite
200, Coeur d′Alene, ID 83815-9408. 1-800-HECLA91 (1-800-432-5291)
Attention: Investor Relations. In addition, ?any ?relevant materials filed
with the SEC will be available free of charge at the SEC′s website at www.sec.gov
orinterested persons ?may access copies of such documentation
filed with the SEC by the Company by visiting the Investors section of
the Company′s website at www.hecla-mining.com.
Cautionary Statements
Statements made which are not historical facts, such as anticipated
payments, litigation outcome, production, sales of assets, exploration
results and plans, prospects and opportunities including reserves,
resources, and mineralization, costs, and prices or sales performance
are 'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as 'may?, 'will?,
'should?, 'expects?, 'intends?, 'projects?, 'believes?, 'estimates?,
'targets?, 'anticipates? and similar expressions are used to identify
these forward-looking statements. Forward-looking statements involve a
number of risks and uncertainties that could cause actual results to
differ materially from those projected, anticipated, expected or
implied. These risks and uncertainties include, but are not limited to,
risks associated with the completion of Transaction, the risk that
expected synergies or cost savings resulting from the Transaction may
not be achieved, metals price volatility, volatility of metals
production and costs, environmental and litigation risks, operating
risks, project development risks, political and regulatory risks, labor
issues, ability to raise financing and exploration risks and results.
Refer to the company's Form 10-K and 10-Q reports for a more detailed
discussion of factors that may impact expected future results. The
company undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by law.
Similarly, please refer to the securities filings of Aurizon for further
information concerning risks applicable to it and its forward-looking
information.
Hecla Mining Company
Jim Sabala, Sr. VP and CFO
Mike
Westerlund, VP-Investor Relations
or
Investor Relations
Direct
Main: 1-800-HECLA91 (1-800-432-5291)
hmc-info@hecla-mining.com
www.hecla-mining.com
