Gold producer Orezone Gold on Monday announced its expansion into Canada through the acquisition of Hecla Mining’s Casa Berardi gold mine and associated exploration portfolio in Quebec for upfront and deferred consideration of $352-million, plus contingent payments of up to $241-million.

The transaction will see ASX- and TSX-listed Orezone acquire 100% of Hecla Quebec, a wholly owned subsidiary of NYSE-listed Hecla Mining, giving it full ownership of the long-life Casa Berardi operation in the Abitibi region. The deal establishes Orezone as a diversified multi-asset producer with operations in Africa and North America.

The upfront and deferred consideration comprises $160-million in cash, $112-million in Orezone shares and $80-million in deferred cash payments. The contingent consideration includes up to $10-million linked to gold prices and up to $231-million based on future permitting and production from proposed openpit operations.

“This transaction marks a significant inflection point for Orezone as it adds a proven, cash-flow-generating asset to our portfolio, and provides asset diversification in a Tier 1 jurisdiction,” commented Orezone president and CEO Patrick Downey.

“The combination of Casa Berardi and Bomboré creates a multi-asset platform with strong production and free cash flow, positioning Orezone for near-term growth and long-term value creation,” he added.

Downey said the company also welcomed Hecla Mining as a new major shareholder and thanked Franco-Nevada for its financial support.

“I want to thank Franco-Nevada for their sponsorship in this acquisition, and their team’s dedication and support throughout,” he said.

Franco-Nevada is supporting the transaction through a $100-million gold stream, under which Orezone will deliver fixed quarterly gold volumes for the first five years, followed by 5% of production thereafter.

ESTABLISHED OPERATION
Casa Berardi is an established underground and openpit gold mine with a production history dating back to 1988. The operation has produced more than 3.2-million ounces of gold and maintains a proven record of resource replacement.

As at December 31, 2024, the mine hosted proven and probable reserves of 1.3-million ounces and measured, indicated and inferred resources totalling about 1.4-million ounces.

Gold production guidance for 2026 is between 83 000 oz and 91 000 oz, with average yearly production of more than 100 000 oz over the past five years.

The transaction also includes more than 19 000 ha of exploration ground covering 37 km along the Casa Berardi fault, as well as the advanced Heva-Hosco project, which hosts more than 1.8-million ounces of resources.

For Hecla Mining, the transaction forms part of its strategic shift towards silver-focused assets and balance sheet strengthening.

Hecla expects to receive up to $593-million in total consideration, comprising cash, equity, deferred payments and contingent consideration.

“The sale of Hecla Quebec represents an important milestone in Hecla's transformation as we concentrate capital allocation and operational focus on our world-class silver portfolio,” said Hecla president and CEO Rob Krcmarov.

“Upon closing, this transaction is immediately ROIC accretive and delivers attractive value to our shareholders while enabling us to strengthen our balance sheet while continuing to invest in growth initiatives at our core silver assets,” he added.

Hecla said the proceeds would be used primarily for debt reduction and funding growth initiatives at its flagship Greens Creek and Keno Hill operations.

CLOSING TIMELINE
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions, including approvals from the TSX and ASX.

Following completion, Orezone will operate a diversified portfolio anchored by its Bomboré mine in Burkina Faso and the Casa Berardi operation in Quebec.