NYSE-listed Hecla Mining has announced the dismissal of a ‘bad actor’ lawsuit that has been impacting its Libby Exploration project, in Montana.
The lawsuit, filed by environmental groups and tribes, alleged that former CEO Philip Baker was unfit for the exploration and mining permits sought by Hecla, owing to his past involvement with Pegasus Gold, which filed for bankruptcy in 1998 and subsequently defaulted on reclamation obligations at several Montana mines.
The Montana First Judicial District Court in Lewis and Clark County dismissed the lawsuit on July 11, following Baker’s recent retirement from Hecla. The plaintiffs voluntarily withdrew their legal challenge, citing the change in leadership as a decisive factor in their decision.
The lawsuit had sought declaratory relief and a writ of mandamus to compel the Montana Department of Environmental Quality to enforce provisions under the Metal Mines Reclamation Act, which could have hindered Hecla’s efforts to renew or obtain new permits necessary for the Libby Exploration project.
The dismissal of the lawsuit allows Hecla to refocus its efforts on securing the necessary permits for the project, which represents a significant silver and copper opportunity.
Hecla’s subsidiary has submitted a plan of operations to the US Forest Service, which is undergoing environmental assessment review under the National Environmental Policy Act. If approved, the plan would facilitate crucial activities including dewatering and rehabilitation of existing infrastructure, as well as the commencement of new exploration initiatives.
Hecla announced Baker’s retirement in May, appointing Cassie Boggs as interim president and CEO.
QUARTERLY PRODUCTION
Meanwhile, Boggs last week reported record quarterly output at the Lucky Friday mine, improved throughput at Keno Hill and a solid performance at Greens Creek.
Hecla produced 4.5-million ounces of silver during the quarter, a 6% increase over the prior quarter, reflecting a full quarter of production at Lucky Friday.
Boggs said that Keno Hill’s expected silver production would exceed 2.7-million ounces this year, standing Hecla in good stead to produce 17-million ounces in 2024 – nearly 20% up from 2023’s output.