Strategic Gold: Hecla Divests Casa Berardi to Orezone for $593M as Part of Silver Pivot

In a major reshaping of its portfolio, Hecla Mining has announced the sale of its Casa Berardi gold mine in Québec to Orezone Gold, with total deal consideration reaching up to US$593 million. The transaction, disclosed late January 2026, reflects a deliberate strategic pivot as Hecla concentrates resources on its premier silver assets while Orezone accelerates its expansion into stable, developed mining jurisdictions in North America.

The Casa Berardi sale signals a notable shift in how major mining companies are reallocating capital. For Hecla, divesting the underground and open-pit gold operation allows the company to sharpen its focus on silver production—a metal it considers core to long-term value creation. For Orezone, acquiring the established Casa Berardi mine represents a turning point, transforming the company from an exploration-stage developer into a cash-generating gold producer with proven operational infrastructure.

Deal Structure: How Hecla Gets Paid from the Casa Berardi Transaction

The acquisition is structured as a multi-stage payment arrangement designed to balance immediate capital transfer with contingent upside tied to future gold production. Hecla will receive US$160 million in cash at closing, supplemented by approximately 65.7 million Orezone common shares—representing roughly 9.9% of Orezone’s pro forma equity and valued at approximately US$112 million at announcement.

Beyond the upfront component, Hecla has secured US$80 million in deferred cash payments: US$30 million due 18 months after closing and US$50 million payable after 30 months. This staggered approach provides Casa Berardi’s new operator with working capital flexibility during the transition phase. The remaining contingent consideration totals up to US$241 million and hinges on operational performance and commodity prices. This includes production-based royalty payments as high as US$211 million, calculated at US$80 per ounce for the first 500,000 ounces and US$180 per ounce thereafter. Hecla may also receive US$20 million upon securing critical permitting approvals, plus up to US$10 million should gold prices exceed US$4,200 per ounce.

Franco-Nevada, a major player in gold and silver royalties, is backing Orezone’s acquisition as a sponsor, signaling institutional confidence in the deal’s merits and Orezone’s ability to execute.

What Orezone Gains: The Casa Berardi Asset Foundation

Casa Berardi represents a proven, long-life asset with a three-decade operational track record. Located in Québec’s Abitibi region, the mine has produced over 3.2 million ounces of gold since the late 1980s. As of end-2024, reserves stood at 1.3 million ounces of gold in the proven and probable category, with measured, indicated, and inferred resources providing additional production runway. Orezone’s 2026 production guidance for Casa Berardi ranges between 83,000 and 91,000 ounces.

For Orezone, the acquisition does more than add tonnage to the balance sheet. Casa Berardi brings immediate cash flow generation, reducing execution risk relative to developing greenfield deposits from scratch. The mine’s location in Québec offers jurisdictional advantages: established mining infrastructure, stable regulatory environments, and social license built over decades of operation.

Why This Transaction Matters: Strategic Implications Across the Sector

Hecla’s divestment of Casa Berardi underscores the company’s strategic conviction that silver, not gold, represents its core opportunity. The company’s leadership, including President and CEO Rob Krcmarov, has articulated that concentrating capital on world-class silver assets—rather than maintaining a diversified precious metals portfolio—is the path to superior shareholder returns.

Conversely, for Orezone and its CEO Patrick Downey, the Casa Berardi acquisition marks a decisive moment. The company is pivoting from pure exploration into production, leveraging the cash flow generated by an operating mine to fund its Bomboré development project in Burkina Faso. This two-pronged strategy—a producing asset in a Tier 1 jurisdiction plus a high-potential greenfield in West Africa—provides geographical and operational diversification while maintaining exposure to gold upside.

The broader industry takeaway: as commodity cycles shift and capital disciplines tighten, established mines in stable jurisdictions command premium valuations. Companies like Hecla are comfortable shedding mature assets to competitors if it accelerates focus on their highest-conviction business lines. Conversely, developers like Orezone recognize that owning a cash-generating asset unlocks financing optionality and reduces dependency on equity dilution for funding exploration and development.

Casa Berardi’s transition from Hecla to Orezone exemplifies how capital reallocation across the precious metals sector continues to reshape competitive positioning and strategic priorities in mining.