Hecla seizes majority position in Acadia

Through a recent share transaction, U.S.-based Hecla Mining (NYSE) has gained a majority interest in Acadia Mineral Ventures (TSE). Hecla now holds 52.5% of Acadia’s common stock and its chairman, Arthur Brown, is expected to be named Acadia’s new chairman at a board meeting later this month. In exchange for the 52.5% interest, Hecla paid $600,000 in cash and turned over its interest in nine Canadian properties to Acadia. The properties, stretching from Newfoundland to British Columbia, include the Bachelor Lake gold property near Desmaraisville, Que., and the North Gold zone in the Abitibi region of Quebec.

“Our new association with Acadia will augment our Canadian presence and allow us to more efficiently pursue promising mineral properties in Canada,” said Brown.

Under the agreement, Hecla will pay Acadia another $600,000 in equity financing within six months of the closing date, and will provide up to $4 million for exploration over the next two years.

Hecla has also agreed to make $900,000 in cash payments to Acadia in relation to the Mooseland gold property in Nova Scotia.

South of the border, Hecla has closed the Apex germanium- gallium-mine in Utah in response to declining prices for the metals. The decision will cut the workforce at the Apex plant in half, affecting about 40 full-time employees.