Hecla Mining Company (HL) announced on Monday that it has agreed to sell its subsidiary that owns the Casa Berardi operation in Quebec, Canada, to Orezone Gold Corporation for up to $593 million in total consideration.
The transaction advances Hecla's strategic transformation to focus on its premier silver assets and is expected to strengthen the company's financial position.
The transaction is expected to close in the first quarter of 2026, subject to certain conditions being satisfied. Under the terms of the agreement, Hecla expects to receive gross proceeds of up to $593 million, which includes: cash consideration of $160 million due upon closing, equity consideration of approximately 65.7 million Orezone common shares and deferred cash consideration of $80 million, payable in one payment of $30 million at 18 months and one payment of $50 million at 30 months.
"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 Rob Krcmarov, President and Chief Executive Officer of Hecla Mining Company. "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, particularly the ramp-up of Keno Hill and our Tier 1 Greens Creek operation."
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