TORONTO (miningweekly.com) – Precious-metals producer Hecla Mining has fully repaid a term loan used last year to buy partner Rio Tinto out of the Greens Creek mine, in Alaska, the firm announced on Thursday.

The final $38,3-million payment was made from the company's available cash resources, which stood at more than $80-million at the end of the last quarter.

Hecla also reported that it has entered into a three-year senior secured revolving credit facility, that it plans to use for “general corporate purposes”.

In the near term, however, the firm does not expect to draw down on the new $60-million facility.

Besides the Greens Creek silver/zinc/gold/lead mine, Hecla also owns the Lucky Friday mine, in Idaho, which produces silver, lead and zinc.

“We set a course in early 2009 to optimise our operations and eliminate our debt,” Hecla CEO Phillips Baker Jr, said in a statement.

“We have accomplished that. Our two US operations generated strong cash flow allowing full payment of the remaining portion of our term debt nearly one year ahead of the required schedule.”

The company expects to report record annual cash flow this year, in part thanks to the last year's acquisition of the 70% it did not yet own in Greens Creek, Baker said.

“With this cash flow and the new revolving credit facility, we plan to increase exploration, capital investment programmes and acquisition activities.”