Business
Hecla Mining Announces Sale of Casa Berardi for up to $593 Million
Transaction Aligns with Company’s Strategic Transformation; Expected to Further Strengthen Balance Sheet COEUR D'ALENE, Idaho / Jan 26, 2026 / Business Wire / H
About this update from Hecla Mining Company
[{"type":"text","content":"Transaction Aligns with Company’s Strategic Transformation; Expected to Further Strengthen Balance Sheet COEUR D'ALENE, Idaho / Jan 26, 2026 / Business Wire / Hecla Mining Company (NYSE:HL) (\"Hecla\", or the \"Company\") announced today that it has agreed to sell its subsidiary that owns the Casa Berardi operation in Quebec, Canada to Orezone Gold Corporation (\"Orezone\") 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, to be issued upon closing, currently valued at approximately $112 million 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 Contingent consideration of up to $241 million, comprised of: Production-based royalty payments of up to $211 million ($80/oz for the first 500,000 oz, then $180/oz thereafter from open pit operations) Permit receipt payment of $20 million upon grant of permits Gold price-linked payment of up to $10 million at gold prices exceeding $4,200/oz \"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.\" Strategic Rationale This transaction represents a disciplined portfolio optimization and focuses capital allocation on the Company’s differentiated silver assets, which represent significant growth and value creation opportunities. Upon closing, Hecla will further solidify its position as t...