Hecla Signs Definitive Atac Takeover Deal

Atac Resources Ltd. (ATC-TSXV) said Thursday it has signed a definitive deal with Hecla Mining [HL-NYSE]in connection with a proposed transaction that will see Hecla acquiring all the issued an outstanding shares of Atac for 14 cents a share payable in shares of Hecla.

The transaction consists of 0.0166 common shares of Hecla and 0.1 common shares of a new exploration company named Cascadia Minerals Ltd., a company that will hold all of Atac’s rights and interests with respect to the Idaho Creek, Catch, Rosy and PIL projects as well as Atac’s cash balance following completion of the transaction.

It said the Hecla shares received would provide Atac shareholders with a premium of 66% based on Atac’s 20-day volume-weighted average price of $0.0845 as of February 17, 2023, or a 109% premium when including the value of Spinco.

On April 5, 2023, Atac shares closed at 13 cents and currently trade in a 52-week range of 16 cents and $0.065.

News of the Hecla proposal comes after Atac rejected an unsolicited non-binding proposal from Victoria Gold Corp. [VIT-TSXV] to acquire 100% of the share capital of Atac for 12 cents per share, payable in Victoria shares.

Atac has recently been focused on developing Canada’s only Carlin-style gold district and intrusion-related polymetallic targets at the 1,700 square kilometre Rackla property in the Canadian Yukon.

The company also has an option on the 151.5-square kilometre PIL property, which is located in the prolific Toodogone porphyry and epithermal district of northern British Columbia.  Once the option is exercised, Atac and Finlay Minerals Ltd. [FYL-TSXV] will each own 70% and 30% of the project respectively.

Hecla Mining [HL-NYSE], the largest silver producer in the U.S., recently agreed to acquire all the shares of Alexco Resources it didn’t already own in an all-stock deal worth 47 cents a share.

Atac said Hecla is ideally placed to advance the Rackla gold property. It said Hecla’s strong balance sheet, technical abilities and operating experience in the Yukon make it ideally suited to advance the district-scale Rackla project to the development stage.

Meanwhile, Atac shareholders retain exposure to four exciting copper and gold exploration properties in the Yukon and British Columbia, including the new Catch discovery in central Yukon and PIL property in the heart of he Toodoggone region of B.C.

“Not only will shareholders maintain their exposure to the Rackla project, but shareholders will also gain additional exposure to Hecla’s operating mines and development projects in the Americas,’’ said Atac President and CEO Graham Downs.

Cascadia’s flagship project will be the Catch property, where a maiden diamond drill program is planned for late summer.

tsxv nyse gold diamond tsx-vgcx victoria-gold-corp victoria gold corp tsxv-atc atac-resources-ltd atac resources ltd tsxv-fyl finlay-minerals-ltd finlay minerals ltd