Hecla Mining files SEC report on share sales

Published 15/02/2025, 00:28
Hecla Mining files SEC report on share sales

Hecla Mining Co. (NYSE:HL), currently valued at $3.42 billion, has disclosed in a recent SEC filing that it has sold over 23 million shares and registered an additional 36 million for potential sale. The Idaho-based mining company, which specializes in the extraction of nonmetallic minerals, reported these details in a Form 8-K filed on February 14, 2025. The stock has shown remarkable strength, gaining 86.52% over the past year. According to InvestingPro analysis, the company's shares are currently trading near their Fair Value.

According to the filing, Hecla Mining entered into an Equity Distribution Agreement on February 18, 2021, with a consortium of financial institutions, including BMO Capital Markets and J.P. Morgan Securities. The agreement, amended on February 15, 2024, allows the company to sell up to 60 million shares of common stock through the appointed agents. The company has demonstrated financial stability, maintaining dividend payments for 14 consecutive years, with a current dividend yield of 0.86%.

To date, Hecla Mining has sold 23,843,684 shares under this agreement, with the agents receiving a commission of 1.5% of the gross proceeds from these sales. The remaining 36,156,316 shares are now registered and available for sale, as stated in the company's shelf registration statement on Form S-3 and the related prospectus supplement filed on the same day as the 8-K report.

The legal opinion of K&L Gates LLP regarding the shares has been included as an exhibit in the report, ensuring that the shares are legally compliant for sale under the Securities Act of 1933.

Investors may be interested in the company's use of this equity distribution mechanism as a means of raising capital. However, the SEC filing does not specify the intended use of the proceeds from the share sales. The registration of additional shares suggests that Hecla Mining may continue to utilize this method to access capital markets in the future.

This SEC filing provides investors with updated information on Hecla Mining's capital raising activities and the legal framework supporting it. The company's shares are traded on the New York Stock Exchange under the ticker HL for common stock and HL-PB for its Series B Cumulative Convertible Preferred Stock. For deeper insights into Hecla Mining's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed valuation metrics in the Pro Research Report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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