Klondex announces Securityholder Approval of proposed acquisition by Hecla

by Keith Powell
Klondex Mines logo

Klondex is a junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. — Photo courtesy Klondex Mines Ltd.

Klondex Mines Ltd. (TSX:KDX) (NYSE American:KLDX) ("Klondex", the "Company") announced that its shareholders and securityholders approved the proposed statutory plan of arrangement (the "Plan of Arrangement") with Hecla Mining Company (NYSE:HL) ("Hecla") at the Klondex annual and special meeting of securityholders. Under the approved Plan of Arrangement, Hecla will acquire all of the issued and outstanding Klondex shares (the "Arrangement").   

Of the Klondex shareholders who voted, approximately 99.62% Klondex shareholders voted in favor of the special resolution approving the Plan of Arrangement. Of the Klondex shareholders and securityholders who voted, approximately 99.61% Klondex shareholders and securityholders (voting as a single class) voted in favor of the special resolution approving the Plan of Arrangement.

All matters presented for approval at the meeting were duly authorized and approved, as follows:

  • approval of the Arrangement by special resolution of the Klondex shareholders and securityholders;
  • approval of a share option plan for Havilah;
  • election of all management nominees to the board of directors of the Company for the ensuing year or for the period up to the effective time of the Arrangement;
  • appointment of PricewaterhouseCoopers LLP as auditors of the Company for the ensuing year and authorization of the directors to fix their remuneration; and
  • approval of a non-binding advisory resolution on the Company's approach to executive compensation.

Subject to customary closing conditions in accordance with the Plan of Arrangement, the transaction is expected to close on or about July 20, 2018.

In connection with the closing of the Plan of Arrangement, Klondex is expected to concurrently complete the spin-out of its Canadian assets into Havilah Mining Corporation ("Havilah"), a newly formed company to be listed on the TSX Venture Exchange ("TSXV"). The TSXV listing application and other important disclosure pertaining to Havilah are available on SEDAR at www.sedar.com under Havilah's issuer profile.

About Klondex Mines Ltd.

Klondex is a junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine, the Midas Mine and ore milling facility, and the Hollister Mine, all of which are located in the state of Nevada, USA. The Company also has a 100% interest in the True North Mine and mill in Manitoba, Canada and the Aurora Mine and ore milling facility, located in Nevada, USA. 

Forward Looking Statements Apply

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