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COEUR D'ALENE, Idaho, Sep 09, 2011
(BUSINESS WIRE) -- Hecla Mining Company ("Hecla")(NYSE:HL) is pleased to report that the U.S.
District Court for the District of Idaho has approved and entered Hecla's
Consent Decree, which resolves all claims of the United States, the Coeur
d'Alene Tribe, and the State of Idaho against Hecla Limited for historic
environmental liability in the Coeur d'Alene Basin Superfund Site.
"We
are very pleased with the Court's approval of the settlement, and support by
all the parties in resolving this protracted litigation," said Hecla's
President and Chief Executive Officer, Phillips S. Baker, Jr. "As one of
the largest private employers in North Idaho, we look forward to working in
concert with our various stakeholders for a prosperous Silver Valley. With
the litigation behind us, we can now focus on a new chapter and the
opportunities ahead."
Under
the terms of the Consent Decree previously disclosed, Hecla will pay a total
of $263.4 million, plus certain interest payments, over a period of three
years, to the United States, the State of Idaho, and the Coeur d'Alene Tribe.
The initial payment of $167 million is payable by October 8, 2011. The second
and third payments of $25 million and $15 million will be payable one and two
years later, respectively. In addition, proceeds from the exercise of any outstanding
Series 1 and Series 3 warrants (which have an exercise price between $2.45
and $2.50 per share) with an aggregate exercise price of $56 million, will be
paid as quarterly payments, with the remaining balance, if any, due in August
2014. The payments are before any income tax benefits.
Hecla
has a strong balance sheet with $377 million in cash and cash equivalents as
of June 30, 2011 and no debt, low cash costs, and excellent silver margins.
During the first half of 2011 alone, we generated $127 million of operating
cash flow. The Company has sufficient cash on hand to fulfill our settlement
obligations, meet all capital, pre-development, and exploration requirements
for 2011; and adequate funding to pursue other value generating initiatives
for our shareholders.
For
more information on the terms of settlement contained in the Consent Decree,
please see our 2011 SEC filings at http://www.sec.gov.
Visit
Hecla's new website at http://www.hecla-mining.com which includes more in-depth
information about the company, our people, our properties, interesting
historical and silver facts, social responsibility initiatives and
accomplishments, and a detailed investor section.
ABOUT HECLA
Established
in 1891, Hecla Mining Company is the largest and lowest cash cost silver
producer in the U.S. The company has two operating mines and exploration
properties in four world-class silver mining districts in the U.S. and
Mexico.
Cautionary
Statements
Statements
made which are not historical facts, such as strategies, plans, anticipated
payments, litigation outcome (including settlement negotiations), production,
sales of assets, exploration results and plans, costs, and prices or sales
performance are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as
"may," "will," "should," "expects,"
"intends," "projects," "believes,"
"estimates," "targets," "anticipates" and
similar expressions are used to identify these forward-looking statements.
Forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated, expected or implied. These risks and uncertainties include, but
are not limited to, metals price volatility, volatility of metals production
and costs, environmental and litigation risks, operating risks, project
development risks, political risks, labor issues, ability to raise financing
and exploration risks and results. Refer to the company's Form 10-K and 10-Q
reports for a more detailed discussion of factors that may impact expected
future results. The company undertakes no obligation and has no intention of
updating forward-looking statements other than as may be required by law.
For
further information, please contact:
Mélanie Hennessey
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Direct Main: 800-HECLA91
(800-432-5291)
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Vice President
- Investor Relations
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Email: hmc-info@hecla-mining.com
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Direct: 604-694-7729
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Website: http://www.hecla-mining.com
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Hecla Canada Ltd.
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Hecla Mining Company
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400 - 580 Hornby Street
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6500 N. Mineral Drive, Suite 200
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Vancouver, British Columbia
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Coeur d'Alene, Idaho 83815
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V6C 3B6 Canada
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SOURCE:
Hecla Mining Company
Hecla
Mining Company
Vice President - Investor Relations
Mélanie Hennessey, 604-694-7729
Direct Main: 800-HECLA91 (800-432-5291)
hmc-info@hecla-mining.com
http://www.hecla-mining.com
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