Hecla Sues Zemex For Failure To Close Deal
In response to the suit, Richard Lister, president of Zemex Corporation, stated: "We are very surprised and disappointed by Hecla's attempt to turn K-T Clay's adverse operating results into a breach of contract lawsuit. The significant operating loss at K-T Clay was not caused by Zemex; the business was (and still is) owned and operated by Hecla." Mr. Lister further stated, "Hecla's attempt to claim that Zemex misrepresented its ability to obtain financing is completely false. Zemex had fully committed financing for the transaction; that financing is not available today solely by reason of the material adverse change which has occurred at K-T Clay." Mr. Lister finally stated, "Notwithstanding Hecla's press release and lawsuit, Zemex has acted in an entirely appropriate fashion and in the utmost good faith. Zemex still has a strong desire to purchase K-T Clay at a price which is fairly reflective of its value, and is prepared to devote all resources necessary to accomplish this goal in a timely fashion if Hecla has a similar willingness."
For additional information, call Hecla at(208) 769-4144 or visit http://www.hecla-mining.com; or call Zemex at (770) 392-8660 or visit www.zemex.com/minerals.