Greens Creek operator Hecla will cash out its preferred stock and may sell new shares

Hecla Mining Co., which runs the Greens Creek silver mine on Admiralty Island near Juneau, said Tuesday it will redeem all its remaining Series B preferred stock and may sell up to 50 million new shares of common stock.

The redemption is set for Dec. 11. Cashing out every share would cost about $7.64 million, and Hecla said in a filing that it will pay from cash on hand.

The company had $692 million in cash and equivalents at the end of the third quarter, its quarterly filing shows. In that quarter, Greens Creek set a site record of $147 million in free cash flow.

Holders will get $50 a share plus an estimated 68 cents in dividends built up since Oct. 1. They can instead convert each preferred share into about 3.2 shares of common stock by Dec. 10, but they would give up those dividends.

Separately, Hecla signed an agreement Tuesday letting sales agents sell up to 50 million new shares for it over time. It doesn't have to sell any. Any money raised would go to general corporate purposes, which could include exploration, development and acquisitions, according to its prospectus.

Hecla ended a similar agreement from 2021, under which it sold about 59.8 million shares, netting about $348.5 million.