Hecla Mining Co (HL)

[loantech]

Hecla sells plant for cash NR is edited:
2009-01-27 16:01 ET - News Release



ECU ANNOUNCES PROPOSED ACQUISITION OF GOLD AND SILVER PLANT AND CONCURRENT BOUGHT DEAL FINANCING

ECU Silver Mining Inc. has entered into a non-binding letter of intent with Hecla Mining Company for the acquisition of a 500-ton-per-day gold and silver recovery plant located adjacent to ECU's properties near the town of Velardena, in Durango, Mexico. The proposed transaction is subject to ECU and Hecla executing a definitive purchase and sale agreement for the mill. In order to finance such acquisition, ECU has entered into an agreement to proceed with a bought deal offering of subscription receipts by way of short form prospectus for gross proceeds of $17.5-million.

Acquisition of gold and silver plant

ECU has entered into a letter of intent with Hecla, whereupon ECU will acquire the mill in consideration of a cash payment of $8-million (U.S.) and the issuance by ECU to Hecla, by way of private placement, of 750,000 common shares of ECU. If issued, the resale of the ECU common shares by Hecla will be subject to certain quantitative restrictions over and above the four-month hold period that applies under applicable Canadian securities legislation.





The acquisition by the company of the mill is subject to: (i) the execution of a definitive agreement acceptable to each of the company and Hecla; (ii) the completion by the company of its due diligence review of the mill; (iii) the receipt of all requisite third party consents and approvals; and (iv) the approval of the board of directors of the company.