On July 7, 2023, Hecla Mining Company, a US issuer listed on the New York Stock Exchange, acquired ATAC Resources Ltd., a Canadian issuer listed on the TSX Venture Exchange. ATAC’s principal asset is a land package of over 700 square miles (1830 square kilometers) comprising of the Rackla and Connaught properties in the Yukon.
Hecla acquired all of the outstanding shares of ATAC for total consideration of approximately US$18.8 million (C$25 million) in Hecla common stock with the issuance of 3,676,904 Hecla shares to ATAC shareholders based on the share exchange ratio of 0.0166 of a Hecla share for each ATAC common share. As part of the acquisition, Hecla acquired 5,502,956 units consisting of (i) shares of Cascadia Minerals Ltd. representing a 19.9% stake, and (ii) full warrants with a five-year term for a C$2 million cash investment.
Cascadia is a new entity that was spun-out to the former ATAC shareholders as part of the transaction and will be managed by the former management of ATAC, who will explore specific properties in the Yukon and British Columbia. The transaction occurred pursuant to a Court and shareholder approved plan of arrangement under the Business Corporations Act (British Columbia).
Cassels acted as Canadian counsel to Hecla.