Orezone Gold to Buy Quebec Mine From Hecla Mining With Financing From Franco-Nevada — Update

By Katherine Hamilton and Adriano Marchese

Hecla Mining agreed to sell a Quebec gold mine to Orezone Gold, as prices for the metal continue to rally and on Monday broke past a US$5,000 spot price for the first time.

Orezone on Monday said it entered into a definitive agreement to buy Hecla Quebec, which houses the Casa Berardi gold mine as well as a portfolio of exploration properties in the province, for up to US$593 million in total consideration. Orezone said it lined up a US$100 million streaming agreement with Franco-Nevada to help finance the deal.

The acquisition consists of an upfront consideration of US$160 million in cash and US$112 million in Orezone shares, representing 9.9% of the pro-forma issued and outstanding shares of the company.

There would also be two cash payments of US$80 million over the course of about three years and contingent consideration of up to US$241 million comprising royalty payments, permit-receipt payments and gold-price-linked payments.

"This transaction marks a significant inflection point for Orezone as it adds a proven, cash-flow-generating asset to our portfolio," Patrick Downey, Orezone's chief executive officer, said, adding that Casa Berardi's history and potential would provide a foundation for sustained growth.

As part of its financing deal with the Vancouver, British Columbia, company, Franco-Nevada would receive 1,625 ounces of gold every quarter for the first five years. After that, it would get a share of production, which would include 5% of the gold from the Casa Berardi mine and other Quebec assets, and 2.5% of the gold from the Heva-Hosco project.

The deal would bring in a gold supply from the long-running operation in a well-known mining region, Franco-Nevada said. The Casa Berardi mine, in Quebec's Abitibi district, has been producing gold for about 35 years through both open pit and underground work, yielding more than 3.2 million ounces so far and remains a steady source of output and cash flow, the Toronto company added.

"We are delighted to partner with Orezone in this transformative transaction to acquire the Casa Berardi mine and portfolio of exploration properties in Quebec," Franco-Nevada CEO Paul Brink said. "Patrick and the Orezone team have an excellent track record operating and developing mines," he added.

Hecla, which is based in Coeur D'Alene, Idaho, said the transaction is part of its broader goal to focus on silver assets. The deal is slated to close in the first quarter of 2026.

The company said earlier on Monday it expects lower gold production in 2026, in part due to lower milled grades at the Greens Creek and Casa Berardi mines.

Shares of Orezone are up about 17%, at 2.80 Canadian dollars (US$2.04), and Franco-Nevada stock has gained 3%, to C$361.28, in Toronto. Hecla shares have slipped 0.6%, to US$31.61, in New York.

Write to Katherine Hamilton at katherine.hamilton@wsj.com and Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 26, 2026 14:42 ET (19:42 GMT)