Orezone Gold (TSX: ORE) has completed its acquisition of Hecla Quebec, securing 100% ownership of the Casa Berardi gold mine and a broader Quebec exploration portfolio in a $352.0 million upfront and deferred transaction with up to $241.0 million of additional contingent consideration.
The closing gives Orezone an operating gold mine in Quebec and expands the company from a single-asset producer anchored by Bomboré into a multi-asset gold producer with producing, advanced-stage, and early-stage assets in one transaction.
Management framed the acquisition as a strategic move into a Tier 1 jurisdiction and a step toward a diversified, self-funded growth profile.
The core asset is Casa Berardi, an operating gold mine that has produced more than 3.2 million ounces of gold to date. Orezone said the mine carries a resource base of 1.2 million ounces in measured and indicated categories and a reserve base of 1.2 million ounces in proven and probable categories.
The acquisition also includes the Heva-Hosco project, which carries 1.2 million ounces in measured and indicated resources and 0.7 million ounces in inferred resources along the Cadillac-Larder Lake Break.
At closing, Orezone paid $160.0 million in cash and issued 65.8 million common shares to a wholly owned Hecla Mining subsidiary, representing 9.9% of its post-closing share count. Additional deferred cash consideration totals $80.0 million, payable 18 months and 30 months after closing.
The firm said the upfront cash portion was funded from cash on hand and a gold stream entered into concurrently with an affiliate of Franco-Nevada. Under that agreement, Franco-Nevada provided a $100.0 million upfront deposit on closing. Orezone will deliver 1,625 ounces of gold per quarter from 2026 through 2030. After that, Franco-Nevada will receive 5.0% of gold production from the acquired properties, except for certain properties where the stream percentage will be 2.5%.
Orezone also disclosed up to $241.0 million in contingent consideration, including $10.0 million linked to gold prices and $231.0 million tied to permitting and future gold production at Casa Berardi.
Orezone Gold last traded at $2.18 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
