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Hecla Mining Company
("Hecla")(NYSE:HL) provides an update on the previously
announced settlement negotiations with the United States, the Coeur d'Alene
Indian Tribe, and the State of Idaho (the "Plaintiffs") regarding
the Coeur d'Alene Basin environmental litigation and related claims.
On
February 24, we announced that the parties reached an understanding on
proposed financial terms to be included into a comprehensive settlement of
the Coeur d'Alene Basin environmental litigation and related claims. The
Court issued an order giving the parties until April 15, 2011, to inform the
Court of the status of settlement negotiations.
Since
that date, the parties have made significant progress in negotiating the
final terms of settlement to be reflected in a Consent Decree incorporating
both the previously announced financial terms and the non-monetary terms of
settlement, but have not yet finalized the Consent Decree. On each of April
15 and April 18, an update regarding settlement efforts was provided to the
Court by the parties and the mediator. As part of the update, the Court was
told that the parties need additional time to finalize the Consent Decree and
for the management of each of the Plaintiffs to approve the complete terms of
settlement. In response, Hecla anticipates that the Court will issue an order
requiring bi-weekly status conferences with the Court, starting the first
week of May, to keep the Court informed of the progress towards lodging of
the Consent Decree. Hecla is hopeful that the settlement will be completed
and effective no later than during the third quarter.
If
the terms of settlement are completed and approved by the parties, the
Consent Decree will be lodged with the Court, followed by a public comment
period anticipated to last 30 days, after which time the United States will evaluate
and respond to any public comments received and then presumably seek Court
approval and entry of the Consent Decree. If the Court enters the Consent
Decree, Hecla will have settled its historic environmental liability in the
Basin and the remaining obligations in the Box and would make the following
payments:
- $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.
Although
Hecla is optimistic the Consent Decree will be entered, there can be no
assurance that the parties will be successful in negotiating and agreeing on
the final terms of the Consent Decree or that the Consent Decree will be
entered by the Court and thereby become final and binding. Hecla will
continue to provide updates on the status of the Consent Decree.
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 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, and 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.
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
www.hecla-mining.com |
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