Aurizon Mines (TSX: T.ARZ, Stock Forum) Monday said it has entered into a definitive agreement pursuant to which Hecla Mining Company (NYSE: HL) will acquire all of the outstanding diluted common shares of Aurizon for approximately $796 million, this according to a company news release.
Aurizon shareholders may choose to receive $4.75 per share in cash or 0.9953 of a Hecla share, or a combination of both, for each Aurizon share held.
The Hecla offer price represents an approximately 12% premium to the current implied share value of the Alamos offer based on the closing share price of Alamos Gold on March 1, 2013.
Aurizon has agreed to pay Hecla a $27.2-million termination fee under some circumstances.
Aurizon operates the Casa Berardi mine in Quebec, which it expects production of 125,000-130,000 ounces of gold in 2013.