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Hecla Sued Over ‘King’s Ransom’ Paid in $462 Million Mine Deal

May 11, 2022, 6:49 PM

A Hecla Mining Co. investor filed suit in Delaware, claiming the company’s senior leaders drove it to pay “a king’s ransom” for three tapped-out Nevada gold mines in an ill-fated $462 million deal that led to a cash crunch and layoffs.

The 129-page lawsuit, made public Tuesday, targets current and former members of Hecla’s board and management. It accuses them of paying Klondex Mines Ltd. nearly double the value of the three mines—without putting the deal to vote—despite skepticism from shareholders and analysts who called the acquisition “exceptionally expensive.”

“Stockholders are entitled to honest and accurate information,” but Hecla’s leaders ...

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