Announcement • Jul 11
Alexco Resource Corp. completed the acquisition of ATAC Resources Ltd. (TSXV:ATC) from Barrick Gold Corporation (TSX:ABX) and others.
Alexco Resource Corp. signed a non-binding letter of intent to acquire ATAC Resources Ltd. (TSXV:ATC) from Barrick Gold Corporation (TSX:ABX) and others on February 17, 2023. Alexco Resource Corp. entered into a definitive agreement to acquire ATAC Resources Ltd. from Barrick Gold Corporation and others for CAD 39 million on April 5, 2023. Under the proposed transaction, Hecla would acquire all of the issued and outstanding shares of ATAC for CAD 0.14 per ATAC share, payable in shares of Hecla common stock. ATAC shareholders will also receive shares in a new exploration company ("Spinco") which will hold all of ATAC's rights and interests with respect to the Idaho Creek, Catch, Rosy and PIL projects (the "Spinco Assets") as well as ATAC's cash balance following completion of the proposed transaction. Under the Arrangement, ATAC Shareholders will be entitled to receive, for each ATAC Share held: (i) the Hecla Consideration, consisting of 0.0166 of a Hecla Share; and (ii) the Cascadia Consideration, consisting of 0.100 of a Cascadia Minerals Ltd. Share.
The completion of the proposed transaction is subject to, among other conditions, satisfactory completion of due diligence, voting support of key shareholders, ATAC and HECLA shareholder approval, approval of the listing, exercised Dissent Rights, payment to ATAC Board Financial Advisor and ATAC Independent Committee Fairness Opinion Provider shall have been made by ATAC and TSX Venture Exchange approval. ATAC's Board and Management have unanimously approved the transaction and are of the opinion that the proposed transaction is in ATAC's best interests. As of May 17, 2023, the Supreme Court of British Columbia granted an interim order (the "Interim Order") in connection with the proposed acquisition. In accordance with the Interim Order, the Meeting will be held on June 23, 2023. As of March 14, 2023, ATAC has extended the effective period of the letter of intent from March 15, 2023 to the earlier of: (i) the date a definitive agreement is executed, or (ii) April 14, 2023, to allow for more due diligence. As of June 23, 2023, transaction has been approved by the shareholders of ATAC. The Arrangement remains subject to final approval of the Supreme Court of British Columbia and the satisfaction of other customary conditions. The Court hearing for the final order to approve the Arrangement is currently scheduled to take place on June 28, 2023, and closing of the Arrangement is expected to occur shortly thereafter in July. As of May 10, 2023, the transaction is expected to close in the third quarter of 2023. As of May 18, 2023, the Arrangement will close in early July 2023.
Agentis Capital Mining Partners acted as the financial advisor to ATAC. Neville McClure of Stikeman Elliott LLP acted as the legal advisor to ATAC. Gordon Chambers of Cassels Brock & Blackwell LLP acted as legal advisor to Hecla Mining. The Special Committee engaged Fort Capital as a financial advisor. In connection with this engagement, the Special Committee requested that Fort Capital render an opinion to the Special Committee as to the fairness, from a financial point of view. Computershare Investor Services Inc. acted as depositary to ATAC.
Alexco Resource Corp. completed the acquisition of ATAC Resources Ltd. (TSXV:ATC) from Barrick Gold Corporation (TSX:ABX) and others on July, 10, 2023.
