SECURITIES AND EXCHANGE COMMISSION
Washington D. C. 20549
_____________
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): April 1, 1999
Hecla Mining Company
_____________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware
_____________________________________________________________
(State or other jurisdiction of incorporation)
1-8491 82-0126240
_____________________________________________________________
(Commission File Number) (IRS Employer Identification No.)
6500 Mineral Drive
Coeur d'Alene, Idaho 83815-8788
_____________________________________________________________
(Address of principal executive offices) (Zip Code)
(208) 769-4100
_____________________________________________________________
(Registrant's Telephone Number)
Item 5. Other Events.
On April 1, 1999 the Registrant issued the press
release attached hereto as an Exhibit, which is incorporated
herein by this reference.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
Exhibit 99 B News Release dated April 1, 1999
SIGNATURE
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
/s/ Michael B. White
By:______________________________
Name: Michael B. White
Title: Vice President - General
Counsel
Dated: April 1, 1999
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EXHIBIT INDEX
Exhibit No. Title
___________ _____
99 News Release dated April 1, 1999
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EXHIBIT 99
Hecla Mining Company NEWS RELEASE
99-05
FOR IMMEDIATE RELEASE
April 1, 1999
HECLA PLANS TO ACQUIRE THE ASSETS OF MONARCH RESOURCES
LIMITED
COEUR D'ALENE, IDAHO Hecla Mining Company (HL & HL-
PrB:NYSE) of Coeur d'Alene and Monarch Resources Limited
(MRE:TSE) of Bermuda today announced they have signed a letter
agreement which provides Hecla the exclusive right to purchase
the assets of Monarch for $28 million, comprising $15 million
cash and $13 million of Hecla common shares. In addition,
Monarch will receive a royalty payment for future production from
the purchased assets that exceed current reserves. This
agreement is subject to due diligence and the execution of a
definitive purchase agreement, which if executed would be subject
to regulatory and Monarch shareholders' approval. Hecla has
completed preliminary due diligence and has until May 10, 1999,
to complete its full review and execute a definitive purchase
agreement with Monarch.
Monarch's primary asset is its 100% owned La Camorra gold
mine and surrounding exploration concessions in Venezuela. La
Camorra is a high-grade, underground gold mine that produced
51,000 ounces of gold in 1998 at a grade of 0.44 ounce per ton.
Production is scheduled to ramp up to 80,000 ounces annually by
the year 2001. The property is located 300-km southeast of
Puerto Ordaz in the El Dorado District in Bolivar State. The La
Camorra operation exploits two shear zone-hosted quartz veins
that currently contain more than 600,000 ounces of high-grade
reserves. At planned production rates, mining is expected to
continue for at least the next six years. Based on deep drilling
intercepts, it is very likely that mine life can be extended.
The geologic structure of the mine appears similar to other high-
grade, low-cost underground mines operated by Hecla.
Monarch's Mexican interests include the Saladillo property
and other exploration prospects. The Saladillo property is
located 110-km northeast of Durango and is a highly prospective
epithermal, bonanza gold and silver project. The Francine vein
contains a drill-indicated resource of approximately 75,000
ounces gold and 8,000,000 ounces silver at a grade of 0.13 oz/t
gold and 14.6 oz/t silver.
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.
Statements made which are not historical facts, such as
anticipated production, costs or sales performance are "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, and involve a number of risks and
uncertainties that could cause actual results to differ
materially from those projected, anticipated, expected or
implied. These risks and uncertainties include, but are not
limited to, metals prices volatility, volatility of metals
production, exploration project uncertainties, industrial
minerals market conditions and project development risks. Refer
to the company's Form 10-Q and 10-K reports for a more detailed
discussion of factors that may impact expected future results.
Hecla undertakes no obligation to publicly update or revise any
forward-looking statements.
Hecla contact: W. Bill Booth, vice president - investor and
public affairs - 208-769-4126
Monarch contact: Lester Knight, vice president - finance -
609-716-4924
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Hecla's Home Page can be accessed on the Internet at:
http://www.hecla-mining.com
