Hecla Mining (HL) Gains 15% Stake on Canamex Resources

November 19, 2012 10:02 AM EST
Hecla Mining Company (NYSE: HL) announced today that a wholly owned Canadian subsidiary of Hecla has entered into a subscription agreement to acquire 14,000,000 common shares of Canamex Resources Corp.

Subject to receipt of approval by the TSX Venture Exchange, the common shares will be issued to the wholly owned subsidiary of Hecla from treasury at a price of $0.18 per common share for total gross proceeds to Canamex of $2,520,000. Upon completion of the transactions contemplated by the subscription agreement (the “Proposed Transaction”), the 14,000,000 common shares will represent and Hecla will exercise control over approximately 15% of the outstanding common shares of Canamex. In addition, Hecla will have the right to appoint one representative to the Board of Directors of Canamex and will be providing technical assistance to Canamex. Hecla will also have the right to participate in future equity offerings of Canamex in order to maintain Hecla's pro-rata equity interest in Canamex.

Canamex is a Canadian-based resource exploration company currently focused on the exploration of two gold properties, the Bruner gold project (the “Bruner Project”) located in Nye County, Nevada and the Aranka North gold project located in Guyana.

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