Hecla, Triumph strike deal

A deal between Hecla Mining (HL-N) and Vancouver junior Triumph Gold (TAU-V) will give Hecla ownership of the Guariche gold property in Bolivar state, Venezuela.

Guariche, about 50 km west of El Dorado, is a 200-sq.-km property with a measured and indicated resource of 5.6 million tonnes grading 2.1 grams gold per tonne. A further 8.1 million tonnes are inferred, with an average grade of 2 grams per tonne.

Triumph receives US$75,000 plus 1.2 million shares of Hecla, plus 1.2 million warrants exercisable at the average closing price of Hecla shares over the 10 trading days preceding the exercise. The warrants last for three years.

Hecla also deals Triumph options on two of Hecla’s Venezuelan properties, retaining a buy-back right. As well, Hecla has a back-in right on the Las Flores property, also held by Triumph in Bolivar state.