Hecla Mining Divests Casa Berardi Operation to Orezone Gold in Strategic $593 Million Deal

BlockchainTherapist · 2026-02-08T16:12:14+00:00

Hecla Mining Company has divested its Casa Berardi gold mining operation to Orezone Gold Corporation for up to $593 million, allowing Hecla to refocus on its silver portfolio and enhance its financial strength. The deal includes immediate cash and equity, with additional deferred payments.

BlockchainTherapist

2026-02-08 16:12:14

Abstract generation in progress

Hecla Mining Company has completed a major divestiture of its subsidiary holding the Casa Berardi gold mining operation in Quebec, Canada, transferring the asset to Orezone Gold Corporation as part of a comprehensive strategic realignment. This transaction represents a pivotal shift in Hecla’s operational focus, allowing the company to redirect capital and management attention toward its world-class silver portfolio while strengthening its financial foundation.

Transaction Structure and Payment Composition

The total consideration reaches up to $593 million across multiple tranches. Hecla will receive $160 million in cash at closing, supplemented by equity stakes comprising approximately 65.7 million Orezone common shares. An additional $80 million in deferred cash payments will be distributed over time—$30 million at the 18-month mark and $50 million at the 30-month milestone. The transaction is expected to finalize by the end of Q1 2026, contingent on satisfaction of specified closing conditions.

Reshaping Hecla’s Asset Portfolio

By monetizing the Casa Berardi operation, Hecla positions itself to concentrate investment in flagship properties including the Keno Hill development and the Tier 1 Greens Creek facility. Rob Krcmarov, President and Chief Executive Officer of Hecla Mining, highlighted the strategic importance: “This divestiture represents a critical inflection point in our operational repositioning as we concentrate capital allocation and management focus on our elite silver assets. Upon completion, this transaction will be immediately accretive to our return on invested capital (ROIC) while delivering compelling shareholder value. Simultaneously, the strengthened balance sheet enables continued growth investments at our core silver operations, particularly supporting the Keno Hill ramp-up and maximizing production at our premier Greens Creek mine.”

The sale underscores Hecla’s deliberate pivot toward specialization in silver mining, a segment where the company commands significant competitive advantages and production scale.

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