Hecla Mining’s completed its acquisition of Klondex.

“With this acquisition, Hecla now has three high-grade mines in Nevada, one of the best mining districts in the world,” said Phillips S. Baker, Jr., Hecla president and CEO. “These assets immediately add production and cash flow, and because they are a good fit with Hecla’s expertise, we believe there is significant opportunity for improvement in the mines’ productivity and consistency.”

Hecla acquired the outstanding common shares of Klondex for approximately $153 million and 75 million shares of Hecla common stock extinguishing all rights to acquire Klondex common shares.

According to a related 8-K filing, Hecla amended its credit facility with the Bank of Nova Scotia as administrative agent letter of credit issuer, to support the transaction. Scotia Bank, ING Capital and Canadian Imperial Bank of Commerce served as co-lead arrangers and co-bookrunners.

The revolving credit agreement was increased from $200 million to $250 million without limitation, following the closing of the Klondex Mines acquisition.

The revolving loans under the credit agreement will have a maturity date of June 14, 2022, provided, the company does not refinance its outstanding senior notes due May 1, 2021 by November 1, 2020. In that case the revolving loans will mature, and all commitments to lend will terminate, on November 1, 2020.

Proceeds of the revolving loans under the credit agreement may be used for general corporate purposes. The interest rate on outstanding loans is between 2.25% and 3.25% above the LIBOR or between 1.25% and 2.25% above an alternative base rate depending on our total leverage ratio.

Founded in 1891, Hecla Mining is a low-cost U.S. silver producer with operating mines in Alaska, Idaho and Mexico, and is a growing gold producer with operating mines in Quebec and Nevada.