Ownership changes for Bissett Mine

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Klondex Canada’s mine at Bissett

By Don Norman
On March 19, Klondex Mines LTD, the company that had owned the Bissett Mine, announced that the bulk of it’s assets would be absorbed by Hecla Gold as that company acquired all remaining shares in Klondex. The acquisition included only it’s Nevada-based Fire Creek, Midas and Hollister mines.

Klondex Canadian holdings, which include the Bissett mine, will be spun off into a company called Klondex Canada. The Klondex website lists a Bissett number for the new company, but as of press-time, no one was answering the phones.

There is no indication about what this means for Bissett, but it comes on the heels of a reduction in operations and a restructuring of management of the mine in January 2018. That decision was largely based on the site’s inability to achieve planned operating and cash flow goals set out for it in 2017. Gold production for 2017 from True North was estimated to be approximately 24,000 – 27,000 ounces, which is less than the 35,000 – 45,000 ounce range the company had hoped for.

The press release announcing the acquisition, had this to say about Klondex Canada: “Certain members of Klondex’s board and management team will continue on at Klondex Canada. Hecla will subscribe for US$7.0 million of common shares of New Klondex in exchange for a 13.46% equity interest, based on a pre-investment Klondex Canada valuation of US$45 million. Klondex Canada intends to make an application to list its shares on the TSX-V.“