Agnico and Hecla comb new gold areas

Two well known and highly respected mining companies out to broaden their horizons — one American, one Canadian — are joining hands to form a new and well heeled international exploration company that will seek out precious metals deposits in new areas that will span the continent.

Agnico-Eagle Mines (TSE) and Hecla Mining Company (NYSE) which was formed way back in 1898 and headquartered in Idaho’s Coeur d’Alene district, are forming a new joint venture company that will likely soon “go public,” offering some 35,000 shareholders of the two companies a direct participation.

This move represents a first into the United States for Agnico, whereas Hecla has been active in this country for some time through Hecla Mining Company of Canada Ltd., a wholly-owned subsidiary that currently has projects under development in three provinces. But these would not come under the agreement which identifies specific new areas of mutual interest.

“These are first class people. Our philosophies are much the same,” says Agnico President Paul Penna who has often been portrayed as a loner.

Coincidentally, both companies have their roots in silver mining, Agnico at Cobalt where it has been the mainstay of that famed old camp and Hecla at the equally famed Coeur d’Alene where its Lucky Friday Mine, still an important silver-lead producer, has been making mining waves by putting down a 1 1/2 mile vertical shaft, the deepest in North America.

While maintaining their strong silver interests, both companies have expanding gold interests. And now, platinum will be drawing the attention of the new company as well.

For starters, the two companies will put up several million dollars or “all that is needed,” Penna says. But a much larger sum will be raised via the planned rights offerings which will be proceeded with as rapidly as possible.