ISS RECOMMENDS ALEXCO SHAREHOLDERS VOTE FOR PROPOSED TRANSACTION WITH HECLA

  • The deadline for voting is 10:00 a.m. (Pacific Time) FridayAugust 26, 2022.
  • If you have any questions, please contact Alexco’s proxy solicitation agent and communications advisor, Laurel Hill Advisory Group, toll free at 1-877-452-7184 (+1-416-304-0211 outside North America) or email [email protected].

VANCOUVER, BC, August 15, 2022 /PRNewswire/ – Alexco Resource Corp. (US NYSE: AXU) (TSX: AXU) (“Alexco” or the “Company”) is pleased to announce that a leading independent proxy advisory firm, Institutional Shareholder Services Inc. (“ISS”) has recommended that Alexco shareholders (“Alexco Shareholders”) vote “FOR” the acquisition offered by Alexco by 1080980B.VS. (“108”), a subsidiary of Hecla Mining Company (“Hecla”) at the next special meeting of securityholders to be held on Tuesday, August 30, 2022at 10:00 a.m. (Pacific Time) (the meeting”).

At the Meeting, Securityholders will be asked to consider and, if deemed appropriate, pass an Extraordinary Resolution (the “Arrangement Resolution”) approving an arrangement (the “Arrangement”), pursuant to the terms of an arrangement agreement entered into by the Company and Hecla on July 4, 2022, as assigned and amended (the “Arrangement Agreement”) pursuant to which 108 will acquire all of the issued and outstanding common shares of Alexco (the “Alexco Share”) that it does not not already own through a statutory plan of arrangement Business Corporations Act (British Columbia). Pursuant to the arrangement, shareholders will receive 0.116 common shares in the capital of Hecla for each Alexco Share held.

ISS is a leading independent proxy advisory firm that, among other services, provides proxy voting recommendations to pension funds, investment managers, mutual funds and other institutional shareholders.

In their report, ISS said: “The transaction makes strategic sense as shareholders will benefit from diversification of jurisdictional and project risks, improved funding capacity and access to capital, as well as the benefits conferred by an asset consolidation with Hecla.”

The Alexco meeting will take place at:

Location:

Blake, Cassels & Graydon LLP


595 Burrard Street, Suite 2600


Vancouver, British Columbia, V7X 1L3



Date:

Tuesday, August 30, 2022



Time:

10:00 a.m. (Pacific Time)

Alexco’s Board of Directors UNANIMOUSLY recommends that securityholders
VOTE FOR the Arrangement Resolution

The Meeting Materials have been filed by the Company on SEDAR and EDGAR and are available under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. The Meeting Materials are also available on the Company’s website at Alexco – Investors – Special Meeting of Shareholders (https://alexcoresource.com/investors/special-meeting-of-shareholders/).

How to vote

Due to time constraints, Alexco securityholders are encouraged to vote online or by telephone.

THE VOTING DEADLINE IS 10:00 a.m. (Vancouver time) ON FRIDAY AUGUST 26, 2022


Beneficial shareholder

Shares held with a broker,
bank or other intermediary

Registered shareholders
Shares held in own name and
represented by a physical
certificate

Option holders, DSU holders
and RSU holders


www.proxyvote.com

www.investorvote.com

www.investorvote.com


Call or fax the number(s)
registered on your vote
instruction form

Phone: 1-866-732-8683
Fax: 1-866-249-7775

Phone: 1-866-732-8683
Fax: 1-866-249-7775


Resend voting instruction
form in the enclosed envelope

Return the YELLOW form of
proxy in attached postage
paid envelope

Return the GREEN form of
proxy in attached postage
paid envelope

Questions from shareholders and voting assistance

For questions or assistance regarding voting, Alexco securityholders may contact the Company’s proxy solicitation agent, Laurel Hill Advisory Group:

Laurel Hill Advisory Group

North america toll free: 1-877-452-7184
Outside North America: 1-416-304-0211
E-mail: [email protected]

About Hecla

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in United States. In addition to operating mines in Alaska, Idaho and Quebec, Canadathe Company owns a number of exploration properties and pre-development projects in world-class silver and gold mining districts across North America.

About Alexco

Alexco is a Canadian primary silver company that owns and operates the majority of the historic Keno Hill Silver District in from Canada Yukon Territoryone of the richest silver mines in the world.

Website: www.alexcoresource.com

Forward-looking statements

Certain statements (“forward-looking statements”) in this press release contain forward-looking information regarding the Alexco meeting, Alexco’s expected results and developments in Alexco’s operations in future periods, exploration and anticipated development of its properties, plans related to its operations and other matters that may arise in the future, as of the date of this press release. Forward-looking statements may include, but are not limited to, statements regarding the meeting; statements regarding the completion and timing of the transaction; approval by security holders; satisfaction of the conditions precedent to the transaction; and the timing, receipt and anticipated effects of judicial, regulatory and other consents and approvals. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors, which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. These factors include, among others, the risk that the Arrangement will not close when expected or at all or on the terms and conditions set forth in the Arrangement Agreement; bankruptcy of the Company and Hecla to obtain necessary approvals from regulators, courts, securityholders and other third parties, or to otherwise satisfy the conditions of completion of the Arrangement, on a timely basis, or at all, may cause the Arrangement will not be completed on the proposed terms, or at all; changes in laws, regulations and governmental practices; if a third party makes a Superior Proposal (as defined in the Arrangement Agreement), the Arrangement may not be completed and the Company may be required to pay the Termination Fee (as defined in the Arrangement Agreement ); if the Arrangement is not completed and the Company remains an independent entity, there are risks that the announcement of the Arrangement and the allocation of substantial resources of the Company to the completion of the Arrangement could have an impact on the Company’s current business relationships and could have a material adverse effect on the Company’s current and future business, financial condition and prospects; future prices of silver, gold, lead, zinc and other commodities; market competition; and the geopolitical, economic, licensing and legal climate in which we operate. Forward-looking statements are based on certain assumptions that management believes to be reasonable at the time they are made. In making the forward-looking statements included in this press release, Alexco applied several important assumptions, including, but not limited to, assumptions about Alexco’s ability and Hecla receive, in a timely manner and on satisfactory terms, necessary regulatory, judicial, security holder and other third party approvals; the satisfaction of the closing conditions of the Arrangement in a timely manner and the completion of the Arrangement on the terms provided; expected compliance with the terms of the Arrangement Agreement and agreements related to the Arrangement Agreement; the adequacy of our and at Hecla financial ressources; favorable equity and debt markets; and the stability of financial capital markets. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Alexco expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

SOURCEAlexco Resource Corp.

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