Orezone Gold Announces Transformational Expansion into Canada with the Acquisition of the Casa Berardi Gold Mine

Core Viewpoint - Orezone Gold Corporation has entered into a definitive agreement to acquire Hecla Quebec Inc., which includes the Casa Berardi gold mine and exploration properties in Quebec, for a total consideration of $593 million, comprising upfront, deferred, and contingent payments [1][2][6]. Transaction Overview - The acquisition involves 100% ownership of the Casa Berardi gold mine and a portfolio of exploration properties located in Quebec [1]. - The total consideration for the acquisition is structured as follows: $352 million in upfront and deferred payments, and up to $241 million in contingent payments based on gold prices and future production [2][16]. Financial Structure - The upfront and deferred consideration includes $160 million in cash and $112 million in Orezone common shares, along with $80 million in deferred cash payments [2][16]. - The contingent consideration consists of $10 million linked to gold prices and $231 million based on permitting and future gold production from the Casa Berardi mine [2][16]. Strategic Importance - This transaction is seen as a significant milestone for Orezone, enhancing its portfolio with a cash-flow-generating asset and diversifying its operations in a Tier 1 mining jurisdiction [3][6]. - The combination of Casa Berardi and Orezone's existing Bomboré mine is expected to create a multi-asset platform with strong production and free cash flow, positioning the company for growth [3][6]. Casa Berardi Mine Details - Casa Berardi has a long-standing operating history, having produced over 3.2 million ounces of gold since 1988, with proven and probable reserves of 1.3 million ounces [10]. - The mine is expected to produce between 83,000 to 91,000 ounces of gold in 2026, with significant exploration potential across a 37 km mineralized corridor [10][6]. Community and Stakeholder Engagement - Orezone is committed to maintaining strong relationships with local communities and stakeholders, including the Abitibiwinni First Nation, and aims to honor existing commitments and agreements [4][15]. Future Growth Potential - The acquisition is expected to enhance Orezone's resilience and growth potential by delivering immediate scale and increased gold production, thereby strengthening its leverage to gold prices [6][10]. - The exploration portfolio includes the Heva-Hosco project, which has an established resource of 1.2 million ounces indicated and 0.6 million ounces inferred, located near other large-scale gold mines [10][6].