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[February 2003]
Zemex Corporation Settles Hecla Litigation
Zemex Corporation has announced that it has reached agreement with Hecla Mining Company to settle the lawsuit brought by Hecla against Zemex over the failure of Zemex to close the purchase of Hecla's subsidiary K-T Clay Company in early 2001.Peter Gillin, the President and CEO of Zemex, said: "While the Corporation believed it had a strong defence, with a trial date scheduled for later this month, the settlement was reached in order to eliminate litigation risk, timing uncertainties and the demands that would have been placed on management brought about by this action".
The settlement will have an after-tax cost to Zemex of approximately US$3.2 million or US$0.43 per share. Pursuant to the settlement agreement, Zemex will release an escrow deposit of approximately US$2.15 million, with the balance of approximately US$1.8 million to be paid by 3 February 2003. Hecla was claiming US13.5 million in damages.
ENDS