Idaho-based mining company defers dividend payments to conserve cash, comply with restrictions

Idaho-based mining company defers dividend payment

COEUR D’ALENE, Idaho — Hecla Mining Co., an Idaho-based silver and gold mining company, is deferring quarterly dividend payments to owners of all three classes of its preferred stock to conserve cash and comply with restrictions of a bank credit agreement.

Hecla had arranged $380 million in credit facilities in 2008 to help fund the $750 million acquisition of the Greens Creek mine in Alaska from its larger rival, Australia’s Rio Tinto.

In June, the Idaho company had repaid approximately $341.7 million of the $380 million drawn on the facilities.

The three classes of stock in which Oct. 1 dividend payments will be deferred are the Hecla series B cumulative convertible preferred stock, the series C mandatory convertible preferred stock and the 12 percent convertible preferred stock.

Hecla’s common shares rose 5 cents to close at $3.03 on Tuesday.