Thursday, August 2, 2012

Hecla Mining Makes Hostile Bid for U.S Silver

"The head of Sprott Asset Management, Eric Sprott, was keeping his cards close to his chest after Hecla Mining made a hostile C$111-million cash offer to buy U.S. Silver that would derail a Sprott-backed plan to merge U.S. Silver with RX Gold & Silver.

Sprott is a key shareholder of both U.S. Silver and RX Gold & Silver, holding 14 percent and 8 percent of each company respectively, and now with the Hecla bid, as reported by Dorothy Kosich early on Thursday, it faces an interesting dilemma. Does it support a premium bid for U.S. Silver, but in so doing give up on the RX Gold & Silver merger, a combination in which it would be a top shareholder, or does it stick with the merger, arguing as it did last month that the combo would unlock shareholder value?

So far there is no official indication as to what Sprott will decide. A spokesperson for Mr. Sprott said on Thursday he had no comment on the Hecla bid."

- Read the full article here: