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Note 14. Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events [Text Block]
Note 14.    Subsequent Events

On July 26, 2012, we announced a cash tender offer to acquire U.S. Silver Corporation pursuant to which our indirect wholly-owned subsidiary made offers to acquire all of the outstanding common shares of U.S. Silver Corporation ("U.S. Silver") for CDN$1.80 per common share in cash and acquire each outstanding common share purchase warrant for CDN$0.205 (its "in the money" amount based on such price per common share), for total consideration of approximately US$100 million.    The offer reflects a 23% premium to the closing price of U.S. Silver common stock of CDN$1.41 per share, and a 28% premium to the 20-day volume weighted average price of CDN$1.41 per share of U.S. Silver on the Toronto Stock Exchange as of July 24, 2012.  Upon successful completion of the offer, the Company would offer to pay holders of U.S. Silver options (vested or not) for the cancellation of their options the greater of: (a) their "in the money amount" or (b) CDN$0.01 per option in cash.  The offer is set to expire on August 31, 2012, unless previously extended or withdrawn.  There can be no assurance that our cash tender offer will be successful in allowing us to acquire U.S. Silver.  U.S. Silver owns the the Galena and Coeur mines, which are in close proximity to our Lucky Friday Mine and our pre-development and exploration activities in Idaho's Coeur d'Alene Mining District.

In June, the U.S. Silver Board of Directors approved a proposed business combination between U.S. Silver and RX Gold & Silver Inc.  Shareholders of U.S Silver are scheduled to vote on the proposed transaction at a special meeting of U.S. Silver shareholders, currently scheduled for August 7, 2012.

On July 23, 2012, we approached the Board of Directors of U.S Silver to discuss the offer and, at that time, expressed a strong desire to enter into a friendly transaction supported by the Board of Directors of U.S. Silver; however, the two companies were unable to reach an agreement on how best to proceed on a timely basis.  Given this impasse and the rapidly approaching meetings on the proposed RX Gold & Silver Inc. transaction, we felt compelled to make our offer directly to holders of U.S. Silver common shares and warrants and provide them with the opportunity to receive what we believe is superior consideration for their shares.

On August 7, 2012, the shareholders of U.S. Silver voted to approve the business combination with Rx Gold & Silver Inc. As a result, one of the conditions to Hecla's tender offer was not satisfied, and therefore on August 7, we withdrew the cash tender offer to acquire U.S. Silver.