COEUR d'ALENE - Hecla Mining Co., of Coeur d'Alene, announced Monday it agreed with Aurizon Mines Ltd. to acquire all of the issued and outstanding common shares of Aurizon in a more than $770 million transaction.

Under the terms of the transaction, Hecla will acquire all the outstanding common shares of Aurizon, which are valued at $4.75 (Canadian dollars) per share.

"We are pleased Aurizon's board (of directors) recommends support of Hecla's transaction," said Hecla's president and chief executive officer, Phillips S. Baker Jr. "Hecla and Aurizon together create a unique precious-metals company with three long-life, high-grade, low-cost mines in some of the best mining jurisdictions in the world."

He said the three properties have good exploration potential on large, connected tracts of land, and are near communities supportive to mining.

"In addition, all three utilize similar mining methods enabling Hecla to leverage the knowledge and experience from each mine across the organization," Baker said.

Aurizon Mines, based in Vancouver, B.C., said Monday its board of directors determined that the transaction is fair to Aurizon's securityholders and in the best interests of the company.

George Brack, of the Aurizon board, said, "We are pleased that our rigorous process to seek value-maximizing alternatives has resulted in an agreement with Hecla which resulted in additional value for Aurizon shareholders."

Brack said the agreement with Hecla provides Aurizon shareholders an opportunity to "participate in the upside potential of a combined $1.6 billion company with a world-class asset portfolio located in politically stable and proven mining jurisdictions."

Aurizon is a gold producer developing projects in the Abitibi region of northwestern Quebec province.