Hecla Responds to U.S. Silver Board Recommendation; Urges U.S. Silver Shareholders to Take Immediate Action to Stop the RX Proposal
Hecla Mining Company (HL) (“Hecla”) today responded to the U.S. Silver Corporation (“U.S. Silver”) Board of Director’s recommendation regarding Hecla’s offers to acquire all of the outstanding common shares for CDN$1.80 per common share in cash and to acquire each outstanding common share purchase warrant for CDN$0.205 (its “in the money” amount based on such price per common share) (together, the “Hecla Offer”).
“There is nothing in the U.S. Silver Board’s recommendation that changes our view that the RX transaction is inferior to the all cash Hecla Offer,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “Both transactions represent a change in control of U.S. Silver. However, the Hecla Offer delivers significant, immediate and certain value and liquidity to U.S. Silver shareholders, whereas the proposed RX transaction delivers significant risks, considerable debt and assets of questionable value.”
“Furthermore, since the Hecla Offer was announced, U.S. Silver common shares have traded in a narrow band around the $1.80 offer price, a 29% premium to the pre-offer price of $1.40. If the Hecla Offer is not consummated, it is reasonable to expect the U.S. Silver share price to decline back to the pre-offer price.”
“For U.S. Silver shareholders, we believe the choice is clear, but you need to act quickly and vote against the proposed RX transaction before August 2. If your Board won’t protect your right to evaluate the all-cash offer from Hecla by delaying or cancelling the meeting, it is time to take matters into your own hands,” said Mr. Baker.
The Hecla Offer is conditional upon the proposed RX transaction not proceeding or such transaction otherwise terminating; U.S. Silver shareholders need to REVOKE proxies voted for the RX Proposal (if your shares have been previously voted for it) and vote AGAINST it immediately, before the August 2, 2012 proxy submission deadline.