Orezone Gold signs agreement to acquire Hecla Quebec

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.

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.

Orezone 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.

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