US Silver spurns Hecla cash advance, advocates union with RX Gold
US Silver's (TSX-V:USA) board of directors has spurned an unsolicited all-cash take-over bid from Hecla Mining Company (NYSE:HL) and unanimously recommended that shareholders reject the offer by instead voting for the combination of US Silver with RX Gold (TSX-V:RXE).
US Silver chairman and interim CEO Gordon Pridham said in a recent press release that the board believes the strategic combination with RX Gold is in the best interests of shareholders.
The board of directors considers the Hecla offer inadequate from a financial point of view for US Silver shareholders, deeming it a highly opportunistic bid seeking to exploit a recent ebb in silver prices.
Hecla Mining announced its intention to make an all-cash offer for all outstanding shares in US Silver in a press release issued on July 25. The offer priced common shares of US Silver at C$1.80 each.
Prior to this emphatic rejection of the Hecla bid US Silver appeared potentially receptive, announcing on July 26 that it was still in the process of reviewing and evaluating the offer.