Hecla Mining Company (NYSE:HL) gives Brixton another handshake, Yamana Gold Inc (NYSE:AUY)

Posted by Kristi Scott June 28, 2013 0 Comment 1475 views

Hecla Mining Company (NYSE:HL) is subscribing for additional shares in Brixton Metals. The latter is focusing on the Thorn project located in Northwestern British Columbia. Under an agreement that had been signed in Feb 2013, HL is exercising its pre-emptive right of maintaining its pro-rata interest in Brixton. Hecla will be subscribing for 1.7M common Brixton shares at a price of 18 cents/share, for a total of 450,000 shares at a price of 16 cents/share. With these additional shares Hecla will now own around 19.8% of Brixton stock.

The junior explorer is focusing on expanding its 27,000 hectare Thorn asset and moving it to feasibility status. According to a statement released by the company, the project has various high-grade gold, silver, zinc and lead bearing diatreme breccia zones as well as high-grade gold, silver and copper veins. It is situated in the River Sutlahine area in North-western British Columbia, almost 40km away from Chieftain’s Tulsequah Chief mine-development.

Slightly bright, but not yet gleaming

At last check, Gold miners such as Yamana Gold Inc (NYSE:AUY), were rebounding, as there was a rise in bullion on Thursday after it dipped 12% over the last eight sessions. Soft United States economic data in the previous trading day affected the dollar and allayed fears of an abrupt end to quantitative easing. However, the precious metal is still near its three-year low. The sentiment took a bearish turn after gold dropped in global markets. Adding fuel to the already raging fire was Goldman Sachs which lowered gold projections.

Gold prices had fallen 7% last week. It broke below its $1200 handle amidst a slew of various positive developments that were coming out of the U.S. There was a disparity in performance of gold miners shares even as Yamana Gold Inc (NYSE:AUY) and Newmont rose by 2.3% and 1.8% respectively while SPDR Gold Trust dropped 2%. The precious metal has done precious little to improve the gold mining lot in the past year and it will take nothing short of a miracle to bring them to a point where they will be able to sustain themselves and benefit investors who have an undying faith in the value of the yellow metal.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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