July 26, 2012 / 12:49 AM / 7 years ago

Hecla makes hostile takeover bid for U.S. Silver Corp

July 25 (Reuters) - Hecla Mining Co made an all-cash hostile bid to buy U.S. Silver Corp for C$110.7 million, a month after the Canadian company agreed to be bought by RX Gold & Silver Inc.

The offer price of C$1.80 per share represents a 22 percent premium on U.S. Silver’s shares closing price on Wednesday.

“Hecla believes the intended offer will constitute a superior proposal...and represents a premium of 28 percent to the imputed offer price of C$1.41 under the RX Proposal,” the company said in a statement late on Wednesday.

The offer comes less than a fortnight before U.S. Silver shareholders are expected to vote on the proposed deal with RX Gold & Silver in June.

Hecla has sufficient cash to pay for the consideration payable under the offers and associated expenses, the Coeur D’Alene, Idaho-based low cost silver producer said in a statement.

U.S. Silver shares closed at C$1.47 on Wednesday on the Toronto Stock Exchange, while Hecla shares, which have fallen almost 11 percent this month, closed at $4.45 on the New York Stock Exchange.

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