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CUSIP No. 01535P106 | | 13D | | Page 5 of 11 |
Item 1. Security and Issuer.
This Schedule 13D relates to the common shares, without par value (“Alexco Common Shares”), of Alexco Resource Corp. (the “Issuer”). The principal executive offices of the Issuer are located at Suite 1225, Two Bentall Centre, 555 Burrard Street, Box 216, Vancouver, British Columbia, V7X 1M9 Canada.
Item 2. Identity and Background.
This Schedule 13D is being filed by Hecla Mining Company, a Delaware corporation (“Hecla Mining”), Hecla Canada Ltd., a Canadian private limited company (“Hecla Canada”), and 1080980 B.C. Ltd., a Canadian private limited company (“1080980” and together with Hecla Mining and Hecla Canada, the “Reporting Persons”).
Hecla Mining is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho and Quebec, Canada, Hecla Mining owns a number of exploration properties and pre-development projects in world-class silver and gold mining districts throughout North America. Hecla Canada is a direct wholly-owned subsidiary of Hecla Mining, and 1080980 is a direct wholly-owned subsidiary of Hecla Mining. The principal business of Hecla Canada and 1080980 is serving as a holding company with respect to certain Canadian operations of Hecla Mining.
The principal business address of Hecla Mining is 6500 North Mineral Drive, Suite 200, Coeur d’Alene, Idaho 83815. The principal business address of Hecla Canada and 1080980 is 800 West Pender Street, Suite 970, Vancouver, BC V6C 2V6.
The name, business address, present principal occupation or employment and citizenship of each of the executive officers and directors of each Reporting Person are set forth in Schedule A hereto and are incorporated by reference herein.
During the last five years, neither the Reporting Persons nor, to the best of their knowledge, any of the persons listed in Schedule A hereto has been: (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
On July 4, 2022, Hecla Mining entered into an Arrangement Agreement (the “Arrangement Agreement”) with the Issuer. Under the terms of the Arrangement Agreement, Hecla Mining has agreed to acquire all of the outstanding Alexco Common Shares of the Issuer. Subject to the terms of the Arrangement Agreement, holders of Alexco Common Shares will receive 0.116 of a share of Hecla Mining’s common stock, $0.25 par value per share (“Hecla Common Stock”), per Alexco Common Share. A copy of the Arrangement Agreement is filed as Exhibit 1 to this Schedule 13D and is incorporated herein by reference.
Concurrently with the execution and delivery of the Arrangement Agreement and as contemplated by the terms of the Arrangement Agreement, Hecla Mining and the Issuer entered into a bridge loan agreement (as amended to date, the “Bridge Loan Agreement”) pursuant to which Hecla Mining agreed to provide a loan to the Issuer in the amount of up to $30 million (the “Bridge Loan”) to bridge the Issuer’s operations through the closing of the transactions contemplated by the Arrangement Agreement. A copy of the Bridge Loan Agreement is filed as Exhibits 2 and 3 to this Schedule 13D and is incorporated herein by reference.