The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Companies need more time for due diligence ahead of sale North of 60 Mining News - March 17, 2023
Under the current agreement, Hecla will acquire ATAC for C14 cents a share, resulting in nearly C$31 million in Hecla shares and a value of approximately C$8 million shares for a spinoff copper exploration company that will hold ATAC's earlier staged assets and an initial C$2 million invested by Hecla.
ATAC Resources Ltd. March 14 announced that it has extended the effective period of the letter of intent with Hecla Mining Company from the initial date of March 15 to April 14.
Last month, ATAC and Hecla announced the mutual entering of a non-binding letter of intent for Hecla to acquire all issued and outstanding shares of ATAC.
You can read the initial announcement at ATAC acquiesces to Hecla's superior offer in the February 22, 2023 edition of North of 60 Mining News.
Initially, the LOI was set as effective from Feb. 17 until either a definitive and binding agreement in connection with the proposed transaction was set in stone or March 15.
To hammer out the details of a definitive agreement, ATAC and Hecla have extended the expiry date of the LOI until April 14.
Including customary provisions, such as an exclusivity period for the duration, the LOI was not established as a binding agreement with Hecla for the proposed transaction, meaning there is no assurance that ATAC or Hecla will reach an agreement on the terms of the definitive agreement as set out in the LOI or at all.
The extension is to allow for the completion of ongoing due diligence work by both companies ahead of a definitive and binding agreement in connection with the proposed transaction.
No other amendments to the LOI have been made.
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