Hecla closes Casa Berardi sale
US-based precious metals miner Hecla Mining has completed the sale of its Casa Berardi gold mine in Quebec as it strengthens its focus on silver.
The company announced that it had finalised the previously announced divestment of the Casa Berardi asset to a subsidiary of Orezone Gold.
As part of the transaction, Hecla received $160-million in cash and about 65.8-million Orezone shares on closing, with the potential for additional deferred and contingent cash consideration of up to $321-million.
In parallel, the company has issued a notice of full redemption for its remaining $263-million 7.25% senior notes due 2028, with redemption scheduled for April 9. The notes will be redeemed at par, together with accrued and unpaid interest, in accordance with the governing indenture.
The miner intends to use proceeds from the asset sale, along with existing cash reserves, to fund the redemption, effectively reducing its debt burden and improving financial flexibility.
President and CEO Rob Krcmarov said the sale positioned the company to focus on its core silver operations, including Greens Creek, Lucky Friday and Keno Hill, while pursuing future growth opportunities.
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