TSX-listed Orezone Gold has entered into a definitive agreement to acquire Hecla Quebec Inc., a wholly owned subsidiary of Hecla Mining Company.
Through this Transaction, Orezone will acquire 100% ownership of the operating Casa Berardi gold mine and a portfolio of exploration properties, all located in Quebec. Consideration for the acquisition consists of upfront and deferred consideration of $352M and contingent consideration of up to $241M.
The Upfront and Deferred Consideration consists of $160M in cash and $112M in Orezone common shares representing 9.9% of the pro forma issued and outstanding shares of Orezone, both payable upon closing of the Transaction, and $80M of deferred consideration in two cash installments payable at 18 months and 30 months following the closing of the Transaction. The Contingent Consideration consists of $10M linked to gold prices, and $231M based on permitting and future gold production from the proposed Principal and WMCP open pits of Casa Berardi.
Comment from - Patrick Downey, CEO, Orezone Gold:
"This Transaction marks a significant inflection point for Orezone as it adds a proven, cash-flow-generating asset to our portfolio, and provides asset diversification in a Tier 1 Jurisdiction. “The combination of Casa Berardi and Bomboré creates a multi-asset platform with strong production and free cash flow, positioning Orezone for near-term growth and long-term value creation. Casa Berardi’s established operating history, robust resource and reserve base, and substantial exploration upside across a 37 km mineralized corridor, provide a foundation for sustained growth. Consistent with recent acquisitions of non-core Canadian operating mines, we believe this transaction represents a defining milestone that will generate meaningful value for all shareholders."