Orezone Gold outlined plans to acquire Hecla Quebec Inc., a wholly owned subsidiary of Hecla Mining (NYSE:HL), in a conference call that President and CEO Patrick Downey described as a “transformational transaction” amid record gold prices. The acquisition includes the operating Casa Berardi mine and a portfolio of exploration assets in Quebec, marking a strategic expansion into Canada for Orezone and positioning the company as a diversified, multi-asset gold producer.
Deal structure and expected closing
Downey said Orezone will acquire 100% ownership of Casa Berardi and additional exploration properties, including the advanced-stage Heva-Hosco project. The transaction includes an upfront consideration of $272 million, consisting of:
- $160 million in initial cash, funded by $60 million from Orezone’s treasury and $100 million from a Franco-Nevada streaming financing.
- An equity issuance equal to 9.9% for a stated value of $112 million, which would make Hecla a “cornerstone investor,” according to Downey.
The Franco-Nevada stream is based on a five-year fixed delivery of 1,625 ounces of gold per quarter, after which it converts to 5% of gold production. Downey added that Franco-Nevada would pay 20% of spot per ounce delivered. The transaction is subject to standard regulatory approvals, and Orezone expects to close in Q1 2026.
Shift to a larger, diversified production profile
Downey said the acquisition would establish Orezone as an “emerging diversified mid-tier producer” alongside its Bomboré mine in Burkina Faso. For 2026, Orezone presented production guidance of 170,000 to 185,000 ounces for Bomboré and 83,000 to 91,000 ounces for Casa Berardi. On a consolidated basis, the company expects 230,000 to 250,000 ounces of gold production in 2026.
He also highlighted reserve and resource figures presented during the call:
- Bomboré: 2.4 million ounces of reserves, 2.1 million ounces of additional resources, and a 13,000-hectare land package.
- Casa Berardi: 1.3 million ounces of reserves, 2.1 million ounces of measured and indicated resources, and a 56,000-hectare land package (with separate detail later given as 19,500 hectares at the core property level, including claims and leases).
Downey said the deal provides an entry into a “tier-one” mining jurisdiction in Quebec, and that Casa Berardi’s operating history, established infrastructure, and exploration upside could support future growth. He also emphasized the involvement of Franco-Nevada as a financing partner.
Casa Berardi overview: operations, infrastructure, and exploration plans
Casa Berardi is located in Quebec north of Val-d’Or, with access by paved highway and a mine access road. Downey described it as a well-run operation with a skilled local workforce, grid power from Hydro-Québec, and a 30-year operating history. He said the mine has produced 3.2 million ounces of gold over that period and has averaged just over 106,000 ounces per year over the last five years.
Mining is currently via both underground and open pit, with mill feed coming from the West Mine underground and the F160 open pit. Downey described the processing facility as a conventional circuit (jaw crusher, SAG and ball, gravity CIL) with “lots of room to expand,” and said average recovery has been 88%.
Downey said the mine’s reserve estimates were last disclosed at $1,900/oz gold and noted prior expectations that open pit mining would end in 2026, with underground and stockpile processing continuing to 2027, followed by a gap pending permitting of the Principal and WMCP pits. In the Q&A, however, Downey confirmed Orezone believes it can avoid a processing pause by extending underground mine life and expanding F160, supported by measured and indicated inventory near existing infrastructure and exploration work planned over the coming years.
Orezone plans to ramp up exploration to 80,000 to 100,000 meters per year, targeting higher-grade ore shoots and regional targets along the Casa Berardi Fault. Downey said the operation remains underexplored in places, including a “gap zone” between eastern and western areas. He also compared Casa Berardi’s depth (up to 1.5 km, with much of the mine less than 1 km deep) to other Canadian Shield underground mines that extend beyond 2–3 km, suggesting additional down-plunge potential.
Operational priorities and expected investment areas
Downey outlined value-creation levers that Orezone expects to pursue, including mine planning to increase underground grades and tonnage, extending the F160 pit, restarting the East Mine underground area, and making mill improvements. He said the site is well maintained and described Hecla’s performance on safety, housekeeping, and maintenance positively.
Potential mill initiatives discussed included process automation and evaluating flash flotation to address preg-robbing graphite near the main fault, with the goal of improving recoveries. Downey said Orezone would add equipment to accelerate access and drilling and would work with the on-site team before finalizing and communicating a revised mine plan and related capital requirements.
On exploration spending, Downey said Casa Berardi would be “self-funding” at current gold prices. He estimated drilling costs at roughly $125 per meter and suggested that a 100,000-meter annual program could total up to about $15 million, which he said could be funded from operating cash flow. He added that the Casa program would not slow exploration at Bomboré.
Additional Quebec exploration assets and longer-term growth targets
The transaction also includes Heva-Hosco, described as a 3,850-hectare property about 20 km east of Val-d’Or along the Cadillac-Larder Lake Break. Downey cited an established resource of 1.2 million ounces measured and indicated and 0.6 million ounces inferred, supported by about 400,000 meters of drilling. Other assets mentioned included Wildcat Opinaca in the James Bay area (near the Éléonore mine) and the early-stage Duverny project north of Val-d’Or.
Downey said Orezone’s medium-term target is to reach 350,000 ounces per year, supported by Bomboré’s stage two expansion and upgrades and higher-grade feed at Casa Berardi. He also said the company expects improved market visibility and potential multiple re-rating, pointing to recent market examples of “non-core” Canadian mine acquisitions referenced during the presentation.
In closing remarks, Downey said Orezone looks forward to closing the transaction, welcoming Hecla as a significant shareholder, and working with the Casa Berardi team to support “a successful 2026 and beyond.”
About Hecla Mining (NYSE:HL)
Hecla Mining Company, founded in 1891 and headquartered in Coeur d’Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d’Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc.
The company’s principal operations are located in North America and Latin America.
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