Hecla Increases Revolving Credit Agreement to $100 Million

Hecla Mining Company ('Hecla?)(NYSE:HL)
announces that it has reached an agreement with its lenders to increase
the amount available under its undrawn secured revolving credit facility
to $100 million from $60 million. The amendment is effective immediately
and represents a new three-year term on the facility. The financial
covenants and interest rate at LIBOR plus 2.75% to 3.5% depending on the
leverage ratio of the Company, remain unchanged. The lenders for the
credit facility are Scotia Capital and ING Capital LLC.
'Our cash on hand combined with the increased revolving credit facility
gives us greater financial flexibility for growth initiatives,? said
Hecla′s President and Chief Executive Officer, Phillips S. Baker, Jr.
'In addition it demonstrates the continued confidence in our ability to
execute our operation and development plans.?
At September 30, 2011, Hecla had cash and cash equivalents of $413
million which, combined with the $100 million available under this
facility, should be sufficient to fulfill our settlement obligations
(including $168 million due on October 11th), meet all capital,
pre-development, and exploration requirements for 2011, and pursue other
value generating initiatives for our shareholders. The Company has no
significant debt outstanding.
Visit Hecla′s new website at www.hecla-mining.com
which includes more in-depth information about the company, our people,
our properties, interesting historical and silver facts, social
responsibility initiatives and accomplishments, and a detailed investor
section.
ABOUT HECLA
Established in 1891, Hecla Mining Company is the largest and lowest cash
cost silver producer in the U.S. The company has two operating mines and
exploration properties in four world-class silver mining districts in
the U.S. and Mexico.
Cautionary Statements
Statements made which are not historical facts, such as strategies,
plans, anticipated payments, litigation outcome (including settlement
negotiations), production, sales of assets, exploration results and
plans, costs, and prices or sales performance are 'forward-looking
statements' within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as 'may,? 'will,? 'should,? 'expects,?
'intends,? 'projects,? 'believes,? 'estimates,? 'targets,? 'anticipates?
and similar expressions are used to identify these forward-looking
statements. Forward-looking statements 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 price volatility,
volatility of metals production and costs, environmental and litigation
risks, operating risks, project development risks, political risks,
labor issues, ability to raise financing and exploration risks and
results. Refer to the company's Form 10-K and 10-Q reports for a more
detailed discussion of factors that may impact expected future results.
The company undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by law.
For further information, please contact:
M?lanie Hennessey | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | Direct Main: 800-HECLA91 (800-432-5291) |
Vice President ? Investor Relations |
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Direct: 604-694-7729 |
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Hecla Canada Ltd. | Hecla Mining Company | ||||||||||
400 ? 580 Hornby Street | 6500 N. Mineral Drive, Suite 200 | ||||||||||
Vancouver, British Columbia | Coeur d′Alene, Idaho 83815 | ||||||||||
V6C 3B6 Canada |
Hecla Mining Company
Vice President ? Investor Relations
M?lanie
Hennessey, 604-694-7729
Direct Main: 800-HECLA91 (800-432-5291)
hmc-info@hecla-mining.com
www.hecla-mining.com