Hecla Mining is acquiring three high-grade Nevada gold mines as part of a deal to purchase Klondex Mines. The total acquisition is worth US$462 million in cash and stock shares.

Klondex’s Fire Creek, Midas, and Hollister mines are the prized assets changing hands as part of a 110 square mile land package. The three underground, narrow vein mines are located along some of Nevada’s prolific gold trends, with Fire Creek consistently ranking as one of the highest grade gold mines in the world.

Hecla estimated the transaction will add 162,000 gold equivalent ounces to its annual production.

In a press release Phillips Baker, Hecla’s president and CEO, called the opportunity to acquire significant land in the gold fields of northern Nevada “very rare.”

“We see significant opportunity to improve costs, throughput and recoveries over time with our expertise,” Baker added.

Hecla will also launch “significant” exploration efforts at Fire Creek and at the prospective Hatter Graben discovery at Hollister.

The transaction is subject to regulatory and shareholder approvals and is expected to close in the second quarter of this year.

Klondex shareholders have the option of receiving US$2.47 per share in cash or shares of Hecla. Klondex's additional assets in Canada, including the True North mining complex in Manitoba, will be overseen by the existing board of directors and management under the newly formed Klondex Canada, which will apply to be listed on the Toronto venture exchange.