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SECURITIES AND EXCHANGE COMMISSION
Washington D. C. 20549
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FORM 8-K
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported): May 28, 1996
Hecla Mining Company
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-8491 82-0126240
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(Commission File Number) (IRS Employer Identification No.)
6500 Mineral Drive
Coeur d'Alene, Idaho 83814-8788
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(Address of principal executive offices) (Zip Code)
(208) 769-4100
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(Registrant's Telephone Number)
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Item 5. Other Events.
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On May 28, 1996, the Registrant issued the press
release attached hereto as Exhibit A, which is incorporated
herein by this reference.
Item 7. Financial Statements, Proforma Financial Information
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and Exhibits.
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Exhibit A - Press Release dated May 28, 1996.
SIGNATURE
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Pursuant to the requirements of Section 12 of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
HECLA MINING COMPANY
By /s/ Nathaniel K. Adams
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Name: Nathaniel K. Adams
Title: Corporate Counsel and
Assistant Secretary
Dated: May 28, 1996
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EXHIBIT INDEX
Exhibit Description
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A News release dated May 28, 1996
<PAGE> 1 EXHIBIT A
FOR IMMEDIATE RELEASE
May 28, 1996
HECLA AND SANTA FE PACIFIC GOLD AGREE
TO JOINTLY DEVELOP THE ROSEBUD PROJECT
COEUR D'ALENE, IDAHO -- Hecla Mining Company (HL & HL-
PrB:NYSE) and Santa Fe Pacific Gold Corporation have agreed to
enter into a 50/50 joint venture to develop the Rosebud property,
50 miles west of Winnemucca, Nevada, subject to due diligence and
approval by both boards of directors. The project is an
underground minable, high-grade oxide gold deposit that is
currently 100% owned by Hecla. Hecla has reported reserves of
540,000 ounces of gold, 1.2 million tons of ore at 0.45 ounce of
gold and 2.75 ounces of silver per ton of ore. The joint venture
will be operated by Hecla, and ore will be trucked about
100 miles to the Twin Creeks Mine, 45 miles northeast of
Winnemucca, for processing. Capital for the project will be
approximately $20-$25 million. Under the terms of the agreement,
Santa Fe Pacific Gold agrees to fund project development costs of
$12.5 million plus approximately $3 million in other facility
improvements. Santa Fe Pacific Gold will also contribute an
exploration property near the joint-venture property. Santa Fe
Pacific Gold will fund the first $1 million in exploration
expenditures to increase reserves at Rosebud and 67% of future
exploration expenditures.
"This joint venture represents an excellent opportunity for
both Hecla and Santa Fe Pacific Gold to capitalize on our
respective talents of underground mining and processing," said
Patrick M. James, chairman and chief executive officer of Santa
Fe Pacific Gold. "We are contributing the use of our existing
facilities at Twin Creeks to process the ore, we receive a 50%
interest in the project and Hecla saves over $30 million in
capital that would be needed to construct stand-alone milling
facilities. It's a win-win situation." In commenting on the
joint venture, Arthur Brown, chairman and chief executive officer
of Hecla, said, "I am pleased that we are able to partner with
Santa Fe Pacific Gold, a major gold producer, on this low-cost
project. Along with the Rosebud property, we bring our expertise
as underground miners to the table. Through this joint venture,
we'll be able to significantly lower the capital required and
bring the project into production more rapidly than originally
expected."
(more)
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Ore from the underground mine will be mined and shipped to
Twin Creeks at an average rate of 750 tons per day. Production
from the project will be about 100,000 ounces of gold annually at
a cash cost of production of approximately $160 to $180 per
ounce. The project is close to receiving its operating permits,
and construction at Rosebud is expected to begin immediately.
First production is expected in early 1997.
Further, Santa Fe Pacific Gold will pay Hecla $2.5 million
now for an immediate 75% interest in the Golden Eagle joint
venture in Washington. In addition, Santa Fe Pacific Gold is
obligated to fund all expenditures required at Golden Eagle
through the feasibility stage. The original agreement on Golden
Eagle called for Santa Fe Pacific Gold to earn a 70% interest in
the project by spending $7.5 million over three years to produce
a bankable feasibility study by August 1998.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho,
is one of the United States' best-known silver producers. The
company also produces gold and is a major supplier of ball clay,
kaolin and other industrial minerals. Hecla's operations are
principally in the U.S. and Mexico.
Santa Fe Pacific Gold Corporation, headquartered in
Albuquerque, New Mexico, is one of the largest gold mining
companies in North America, with mines in Nevada and California
and exploration offices and projects throughout the world. The
company's shares are traded on the New York Stock Exchange and
the Chicago Stock Exchange under the symbol GLD.
-HL-
Contacts: Hecla:
Vicki Veltkamp, 208-769-4144
Santa Fe Pacific Gold:
Investor Relations - Gina Wilson, 505-880-5361
Media - Wendy Yang, 505-880-5321
Hecla's Home Page can be accessed on the Internet at:
http://www.hecla-mining.com
A free fax of Hecla news releases can be obtained from
BusinessWire
NewsOnDemand at 800-344-7826
