VANCOUVER - Orezone Gold Corporation (TSX:ORE | ASX: ORE | OTCQX: ORZCF) completed its acquisition of Hecla Quebec Inc., a wholly owned subsidiary of Hecla Mining Company, according to a press release statement issued today.
The transaction gives Orezone 100% ownership of the Casa Berardi gold mine and exploration properties in Quebec, Canada. The mine has produced over 3.2 million ounces of gold and holds mineral resources of 1.2 million ounces measured and indicated, and 1.2 million ounces proven and probable reserves.
The acquisition includes the Heva-Hosco exploration project with 1.2 million ounces measured and indicated resources and 0.7 million ounces inferred resources, the Duverny project near Val d’Or, and the Opinaca-Wildcat properties in Quebec’s James Bay region.
Total consideration for the transaction consists of $352 million in upfront and deferred payments, plus contingent consideration of up to $241 million. Orezone paid $160 million in cash at closing and issued 65,757,265 common shares to a Hecla Mining subsidiary, representing 9.9% of post-closing shares. Additional deferred cash payments of $80 million are due at 18 and 30 months after closing.
The company funded the closing cash payment from existing cash and a gold stream agreement with an affiliate of Franco-Nevada Corporation. Franco-Nevada provided $100 million upfront, with Orezone committed to deliver 1,625 ounces of gold quarterly from 2026 to 2030, followed by 5.0% of gold production from the acquired properties.The acquisition significantly expands Orezone’s footprint, with the combined entity now valued at a market capitalization of approximately $964 million. The company operates with a moderate level of debt, maintaining a debt-to-equity ratio of 0.3. Analysts forecast revenue growth of 158% for fiscal 2026, building on the 33% revenue growth recorded over the last twelve months. According to InvestingPro analysis, the stock currently trades near its Fair Value, with shares delivering a remarkable 126% return over the past year. Investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers 11 additional ProTips for Orezone, along with detailed financial health scores and expert research reports.
Orezone plans to publish updated 2026 guidance in the second quarter and an updated mine plan in the fourth quarter of 2026. The company intends to initiate exploration drilling at Casa Berardi in the second quarter, targeting 80,000 to 100,000 meters annually. InvestingPro subscribers can access the company’s detailed Pro Research Report, which transforms complex financial data into clear, actionable intelligence for this acquisition and its implications.
In other recent news, Franco-Nevada Corporation has entered into a $100 million gold stream financing agreement with Orezone Gold Corporation. This agreement is designed to support Orezone’s acquisition of the Casa Berardi Gold Mine and other assets from Hecla Mining Company. The Casa Berardi mine, located in Quebec’s Abitibi region, has a long history of production, having yielded over 3.2 million ounces of gold over its 35-year operational history. This transaction is set to add immediate gold revenues to Franco-Nevada’s portfolio, enhancing its existing revenue streams. The deal marks a significant development for Franco-Nevada, as it strengthens its position in the gold mining sector. These recent developments highlight Franco-Nevada’s strategic efforts to expand its resource base and secure stable income from established mining operations.
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