Stock Pickers Digest Hotline – Thursday, June 30, 2016

Article Excerpt

PLEASE NOTE: Our next Hotline will go out on Friday, July 8, 2016. HECLA MINING CO., $5.10, symbol HL on New York, explores for, mines and processes silver and gold in the U.S., Canada and Mexico. In 2012, the company paid $3.2 million for a 19.9% stake in Dolly Varden Silver Corp., $0.65, symbol DV on Toronto. Dolly Varden owns several silver properties in northwestern B.C. Hecla has now launched a $12 million hostile takeover bid for the rest of the company. Hecla is concerned that Dolly Varden plans to take on a $2.5 million loan with terms that give the lender the right to buy 2.5 million shares at $0.30 each over two years. Dolly Varden has just 18.3 million shares outstanding, so Hecla feels the deal could significantly dilute its holding. The takeover is a small one for Hecla, but it has appeal: the 88 square-kilometre Dolly Varden site could hold as much as 42.6 million ounces of silver in…