Hecla Update
April 19, 2011
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RELATED TICKERS: HL
, SIL
Today a judge ruled that both Hecla and the plaintiffs (the United States, the Coeur d’Alene Indian Tribe, and the State of Idaho) wil be able to extend the verdict in the litigation provided that bi-weekly updates are given. Most likely, a final agreement will be reached by May, June at the latest. Hecla believes the following will be agreed upon by all parties, though without a final consensus, anything is possible
* 102 million of cash, $55.5 million of cash or Hecla stock, and approximately $9.5 million in proceeds from series 3 warrants received by Hecla to date and referred to below, all payable 30 days after entry of the Consent Decree
* $25 million of cash 30 days after the first anniversary of entry of the Consent Decree $15 million of cash 30 days after the second anniversary of entry of the Consent Decree
* Approximately $56.4 million by August 2014, as quarterly payments of the proceeds from the exercise of any outstanding Series 1 and Series 3 warrants (which have an exercise price of between $2.45 and $2.50 per share) during the quarter, with the remaining balance, if any, due in August 2014
Hecla has a little over 200 million in operating cash, so they will more than likely provide the first 55.5 million in stock and excersie the 9.5 million in proceeds. The recent mine collapse and search for Larry, the miner who remains in the mine, will no doubt force this move. Will HL survive this year........who knows. I hope that they find this miner first and foremost, and I give them credit for focusing 100% first on getting Larry before figuring out how the collapse happened.
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