ATAC Resources Ltd (“ATAC”) (TSXV: ATC) announced that it has entered into a definitive arrangement agreement to be acquired by Hecla Mining Company (“Hecla”) (NYSE:HL). Whereby Hecla will acquire all of the issued and outstanding shares of ATAC for consideration payable in shares of Hecla and in shares of a new exploration company named Cascadia Minerals Ltd. (“Cascadia”).
Under the arrangement agreement, the consideration will consist of 0.0166 common shares in the capital of Hecla and 0.1 common shares in the capital of Cascadia for each ATAC common share held. The Hecla shares to be received by ATAC shareholders represent a value of C$0.14 per ATAC share held based on Hecla’s 5-day volume-weighted average trading price ending April 3, 2023.
The Transaction Consideration represents value to ATAC shareholders of C$31 million in Hecla shares and a value of approximately C$8 million in Cascadia shares based on Hecla’s C$2 million placement. The Hecla shares provide ATAC shareholders with a premium of 66% based on ATAC’s 20-day volume-weighted average price of C$0.0845 as of February 17, 2023, the last trading day preceding announcement of the letter of intent, or a 109% premium when including the value of Cascadia shares received.
ATAC is a Canadian exploration company focused on exploring for gold and copper in Yukon, BC and Nevada.
Fort Capital Partners acted as financial advisor to the Special Committee and provided a fairness opinion with respect to the Transaction. Agentis Capital Partners is acting as financial advisor to ATAC, and Stikeman Elliott LLP is acting as ATAC’s legal counsel.