U.S. Silver Board Recommends Rejection of Hecla Offer and Reaffirms Recommendation for Combination Transaction with RX Gold
SPROTT CONTINUES TO SUPPORT COMBINATION TRANSACTION
TORONTO, July 30, 2012 /CNW/ - U.S. Silver Corporation (USA.TO) ("U.S. Silver" or the "Company") announced that its Board of Directors unanimously recommends that U.S. Silver shareholders REJECT the unsolicited cash offer from Hecla Mining Company ("Hecla") to acquire all of the outstanding common shares of U.S. Silver (the "Hecla Offer").
Commenting on the offer, Gordon Pridham, Chairman & Interim CEO of U.S. Silver said, "the Board continues to believe that the proposed strategic combination transaction with RX Gold is in the best interest of shareholders and continues to recommend that U.S. Silver shareholders vote in favour of the combination transaction at the August 7th shareholders' meeting. Valuation multiples in the precious metals sector are at or near all-time lows - the Hecla Offer is simply not compelling enough for us to abandon our strategic plan going forward."