Hecla Mining Company Announces Completion of Major Transaction and Redemption of Notes

Key Points:

• Hecla Mining Company (NYSE: HL; HL-PB) has completed a significant transaction involving the sale of certain assets to Orezone Gold Corporation.
• As part of the transaction, Hecla is entitled to deferred and contingent cash consideration payments of up to \$321 million, subject to meeting various conditions and milestones.
• The company announced plans to redeem in full the remaining principal amount of its outstanding Notes on or about April 9, 2026, at a redemption price equal to 100% of the principal plus accrued and unpaid interest.
• The proceeds from the transaction, along with cash on hand, will be used to fund the redemption of the Notes and strengthen Hecla’s balance sheet.
• This move is expected to materially improve Hecla’s financial flexibility, positioning the company for strategic growth and investment in its world-class silver assets, including Greens Creek, Lucky Friday, and Keno Hill.
• Hecla remains listed on the New York Stock Exchange, with two classes of securities: Common Stock (HL) and Series B Cumulative Convertible Preferred Stock (HL-PB).
• The company is not classified as an emerging growth company under SEC rules.

Details Investors Should Know:

• The Share Purchase Agreement, dated January 26, 2026, among Hecla Mining Company, 17629346 Canada Inc., and Orezone Gold Corporation, governs the terms of this asset sale. The agreement contains representations and warranties, which are qualified by a confidential disclosure letter that may include exceptions and modifications to the stated terms.
• The deferred and contingent payments of up to \$321 million are not guaranteed. They depend on Orezone’s liquidity and specific production, permitting, and metal-price triggers. There is a risk that these payments may be reduced, delayed, or not received at all.
• The company’s deleveraging (paying off debt) is expected to enhance its financial flexibility and capacity to invest in strategic growth, which management believes will maximize long-term shareholder value.
• Hecla’s President and CEO, Rob Krcmarov, described the transaction as a “defining moment” in the company’s transformation, emphasizing financial strength and a focus on silver assets as key outcomes.
• Shareholders should note that neither the Form 8-K nor the accompanying News Release constitute a formal notice of redemption. If you hold Notes, refer to the official notice of redemption for instructions.
• Risks include operational, regulatory, permitting, labor, supply chain, and metal price volatility, as well as potential delays in receiving contingent payments. Investors are encouraged to review Hecla’s 2025 Form 10-K for a comprehensive list of risks and uncertainties.

Potential Price Sensitivity:

• The completion of the asset sale and the planned redemption of debt could positively affect Hecla’s share price by strengthening its balance sheet and increasing financial flexibility for future growth investments.
• Uncertainty around the receipt and timing of deferred and contingent payments may introduce volatility or risk.
• Successful execution of this strategy may position Hecla as the premier silver producer in North America, which could attract investor interest.

Contact Information:

• For further information, investors can contact Mike Parkin, Vice President – Strategy and Investor Relations, or Cheryl Turner, Investor Relations Coordinator.
• Email: [email protected]
• Website: www.hecla.com

Cautionary Statements:

• This article contains forward-looking statements regarding the transaction, payment of deferred consideration, redemption of Notes, and future business plans, which are subject to risks and uncertainties.
• Material risks include but are not limited to: non-receipt of contingent payments, metal price volatility, operational and regulatory risks, supply chain issues, and other business risks.
• The company undertakes no obligation to update these statements except as required by law.

Disclaimer:
This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. All forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Investors should consult the company’s public filings on www.sec.gov and seek advice from qualified financial professionals before making investment decisions.

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