Klondex spinoff Havilah Mining begins trading

With Hecla Mining‘s (NYSE: HL) takeover of Klondex Mines now completed, the resulting Klondex spinoff company Havilah Mining (TSXV: HMC) has started trading as of July 25, with its primary listing on the TSX Venture Exchange. In a deal first announced on March 19 and closed on July 20, Hecla acquired all outstanding Klondex shares for US$153 million and 75 million Hecla shares. Hecla was pursuing Klondex’s gold mines and exploration assets in Nevada, and spun out Klondex’s Canadian gold assets as Havilah. As part of the transaction, Hecla subscribed for 3.54 million Havilah shares in a private placement priced at $2.61 per share for a gross purchase price of $9.2 million, or US$7 million, resulting in Hecla owning 13.46% of Havilah’s shares. Hecla says the Havilah shares were acquired for investment purposes and it does not have any “present intention to acquire ownership of, or control over, additional securities” of Havilah. Continue reading at The Northern Miner.