Hecla to Acquire Assets of Independence Lead Mines

COEUR D'ALENE, ID - Hecla Mining Company and Independence Lead Mines reported that they have signed an agreement for Hecla to acquire substantially all of the assets of Independence Lead Mines Company (ILM), located in northern Idaho's Silver Valley. Included in the ILM assets are the West Independence property and ILM's mining claims pertaining to the DIA agreement with the Lucky Friday mine, which includes any future interest or royalty obligation to ILM. The transaction is subject to approval by shareholders of ILM.
In exchange for the assets, Hecla will distribute 6,936,884 of its common shares to ILM shareholders. There is a $1.25 million transaction break-up fee associated with the agreement. The transaction is expected to be completed later in the first quarter of 2008.
ILM President Bernard C. Lannen said, "Our management and board are completely supportive of this transaction. We feel the agreement is best for our shareholders, giving good value and the opportunity to continue to participate in the metals market as Hecla shareholders."
Hecla President and Chief Executive Officer Phillips S. Baker, Jr., said, "This transaction not only guarantees that Hecla will receive 100% of the future profits of the Lucky Friday Mine, but also helps to consolidate our land position in the Star Morning district. We believe that the future potential of the Lucky Friday mine is tremendous. We look forward to moving ahead expeditiously with our plans for operating improvements, future increases in the resource and the work on our prefeasibility study for possible expansion of production there."
The company's address is 6500 N. Mineral Drive, Suite 200, Coeur d'Alene, ID 83815, 208.769.4100, email: [email protected].