Hecla Mining Company and Mines Management Inc. announced a merger agreement May 24, 2016. The agreement is pending Mines Management shareholder approval and other undisclosed closing conditions.

In the proposed merger, still pending approval from Mines Management shareholders, each common share of Mines Management will be exchanged for .2218 of a common share of Hecla. Based upon the 10-day Volume Weighted Average Price, the exchange rate is a 41 percent premium for Mines Management stockholders.

"Hecla is the logical company to move Montanore forward, with its close proximity to Rock Creek, as well as its similar geology and scale," Hecla president and chief executive officer Phillips S. Baker, Jr., wrote in a May 24 press release. "We have considerable experience operating Greens Creek in a National Monument which will, combined with our financial strength and commitment to the community and environment, help Montanore reach its full potential."

The transaction is expected to close during the third quarter of 2016.