07:38 AM EDT, 03/19/2018 (MT Newswires) -- Hecla Mining Company (HL) -- a low-cost U.S. silver producer -- said Monday that it will buy all the outstanding shares of Klondex (KDX.TO), a high-grade Nevada underground gold producer with its Fire Creek, Midas and Hollister mines, through a plan of arrangement. According to a statement, Klondex will spin out its Canadian assets to its existing shareholders.

Pre-market shares of dual listed Klondex were up more than 50% on the news.

Under the terms of the transaction, Hecla will pay US$462 million with a mix of cash and shares of Hecla common stock and the newly formed company, Klondex Canada. Klondex's shareholders will receive US$2.47 per share in cash or shares of Hecla, which represents a 59% premium to Klondex's 30-day volume-weighted average price, as at March 16, 2018 on the NYSE American.

Price: US2.25, Change: +0.81, Percent Change: +56