Hecla Mining Finalizes Sale of Casa Berardi Gold Mine for $352M Upfront, Plus Contingent Payments
Summary
Hecla Mining (HL) has completed the sale of its wholly-owned subsidiary, Hecla Quebec Inc., to Orezone Gold Corporation. This transaction includes the Casa Berardi gold mine and a portfolio of exploration properties in Quebec, Canada. The consideration for Hecla includes $160 million in cash and 65,757,265 common shares of Orezone (representing 9.9% of post-closing shares) paid on closing, along with $80 million in deferred cash payments and up to $241 million in contingent consideration, totaling a potential value of $593 million. This material divestiture provides Hecla with a significant cash infusion and an equity stake in Orezone, allowing the company to monetize an asset and potentially reallocate capital or improve its balance sheet. Investors will now watch how Hecla utilizes these proceeds and the impact on its future production guidance and strategic focus.
At the time of this announcement, HL was trading at $18.36 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $12.3B. The 52-week trading range was $4.46 to $34.17. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.