Klondex Mines

Klondex Mines was a North American gold-mining company, based in Reno, Nevada and Vancouver, British Columbia. It had three operating mines in Nevada and one in Manitoba.[1] and was listed on the Toronto Stock Exchange[2] and the NYSE American.[3] In March 2018, it was acquired by Hecla Mining.[4]

Klondex Mines
TypeSubsidiary
Founded1975
Headquarters
Reno, Nevada and Vancouver, British Columbia
Key people
ParentHecla Mining
Websitehttps://www.klondexmines.com/

History

Klondex Mines was founded in 1975, through the spinoff of the Fire Creek Project in Nevada from Placer Development.[5] Until 2012, Klondex was principally engaged in exploration of its Fire Creek Project.[5] It attempted to sell this project to several suitors in the 2000s, but was not successful in doing so.[5]

In 2011, a dissident shareholder group successfully proposed a new board of directors.[6] In September 2012, the current CEO, Paul Huet, took control, as the result of another proxy battle.[7] Huet had experience with the company, as part of previous teams examining the possibility of buying its Fire Creek project. At that time, the company was in dire financial straits.[7]

In February 2014, the company bought the Midas mine and mill in Nevada from Newmont Mining for US$83 million.[8] Huet had experience with the mine, having previously been the mine manager for seven years. In January 2016, the company purchased the Rice Lake gold mine (also called the True North mine) in Manitoba for US$32 million, from creditors.[9] Also in 2016, it purchased the Hollister mine in Nevada for US$80 million.[10]

In 2018, the company laid off 90 employees at its True North mine, as the result of disappointing production in 2017.[11] Production was only about 25,000 ounces, as opposed to the expected 50,000 ounces.[11]

In March 2018, the company was acquired for US$462 million by Hecla Mining. At the same time, Klondex's Canadian assets (principally the True North mine) were spun out into a new entity, Klondex Canada, listed on the TSX Venture Exchange.

Operations

Klondex had four operating mines, with total 2017 production of about 220,000 gold-equivalent ounces.[12] Its four mines were[1]

References
  1. "Overview". www.klondexmines.com. Retrieved 2018-02-27.
  2. "Klondex Mines Inc. - TMX Money". TMX Money.
  3. "KLONDEX MINES LTD. (KLDX)". NYSE.
  4. "Hecla Mining buying Klondex for US$462M, to spin out Canadian assets - BNN Bloomberg". BNN. 2018-03-19. Retrieved 2018-09-25.
  5. "History of the Company". www.klondexmines.com. Retrieved 2018-02-27.
  6. Editor, ADELLA HARDING Mining. "Shareholder group proposes new Klondex board". Elko Daily Free Press. Retrieved 2018-02-27.CS1 maint: extra text: authors list (link)
  7. "This Canadian Mining Darling Finds Gold in Projects No One Wants". Bloomberg.com. 2017-01-18. Retrieved 2018-02-27.
  8. "Klondex gets Midas touch with acquisition of mine and mill". Financial Post. 2014-02-05. Retrieved 2018-02-27.
  9. "Klondex buys idled Rice Lake gold mine for US$32M". CTVNews. 2015-12-17. Retrieved 2018-02-27.
  10. "GOLD: Klondex to purchase Hollister mine, Esmeralda mill from Waterton - Canadian Mining Journal". Canadian Mining Journal. 2016-07-26. Retrieved 2018-02-27.
  11. Redekop, Bill (2018-01-11). "Less than stellar output leads to layoffs at Bissett gold mine". Winnipeg Free Press. Retrieved 2018-02-27.
  12. "Klondex Mines - 2017 Q3 Report" (PDF).
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