Orezone Gold has signed a definitive agreement to acquire Hecla Mining Company’s wholly owned subsidiary Hecla Quebec for an upfront and deferred consideration of $352m (C$478.04m).
This acquisition will enable Orezone to gain full ownership of the operational Casa Berardi gold mine along with a collection of exploration properties, all situated in Quebec, Canada.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The total consideration includes contingent payments that could reach up to $241m.
The upfront and deferred consideration comprises cash amounting to $160m and $112m in Orezone common shares.
Orezone Gold noted that the contingent consideration comprises $10m tied to gold prices and $231m based upon future permitting and gold production from the mine’s proposed principal and West Mine Crown Pillar open pits.
The underground and open-pit gold mine, Casa Berardi, is located in the Abitibi region, recognised as a Tier 1 mining jurisdiction. To date, it has produced more than 3.2 million ounces (moz) of gold.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOrezone Gold will finance the upfront cash consideration through a mix of available cash and a gold stream from Franco-Nevada.
The company has established an agreement for a $100m gold stream. According to the terms, it is obligated to provide fixed gold deliveries of 1,625oz each quarter to Franco-Nevada for the initial five years.
After this period, the stream percentage will be set at 5% of gold production. Orezone Gold will receive a cash payment equivalent to 20% of the spot price for every ounce delivered.
Orezone Gold president and CEO Patrick Downey said: “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.
“Casa Berardi’s established operating history, robust resource and reserve base, and substantial exploration upside across a 37km mineralised corridor, provide a foundation for sustained growth.”
The transaction, subject to certain conditions, is expected to close in the first quarter of 2026.
