Orezone’s Casa Berardi Buy Raises Regulatory and Integration Questions

A Strategic Leap into a Tier 1 Jurisdiction

Orezone Gold Corporation has taken a decisive step to diversify and scale its operations by acquiring the Casa Berardi gold mine and associated exploration properties in Quebec from Hecla Mining Company. This acquisition represents a significant expansion beyond Orezone’s West African base, positioning the company within one of the world’s most respected mining jurisdictions.

Casa Berardi is a well-established underground and open-pit gold mine with a long history of production, having yielded over 3.2 million ounces of gold to date. The mine boasts proven and probable reserves of 1.3 million ounces and measured and indicated resources of 0.9 million ounces, underlining its robust asset base. Orezone’s entry into Quebec not only adds immediate production but also offers substantial exploration potential along a 37-kilometre mineralised corridor.

Financial Structure and Support

The $352 million upfront and deferred consideration includes $160 million in cash and $112 million in Orezone shares, representing nearly 10% of the company’s pro forma equity. Deferred cash payments of $80 million are scheduled over the next 18 to 30 months. Additionally, contingent payments of up to $241 million are linked to gold prices and future production milestones from planned open pits, aligning incentives for long-term value creation.

Backing this deal is a $100 million gold stream financing agreement with Franco-Nevada Corporation, a respected industry player, which provides Orezone with liquidity while sharing some production upside. This partnership not only strengthens Orezone’s financial flexibility but also signals confidence from a major market participant.

Operational and Strategic Implications

With the acquisition, Orezone transforms into a multi-asset gold producer with operations spanning Burkina Faso and Canada. The addition of Casa Berardi enhances Orezone’s production profile, with 2026 guidance for the mine set between 83,000 and 91,000 ounces of gold. Combined with Orezone’s existing Bomboré mine, the company is poised for increased free cash flow and resilience against regional risks.

Orezone’s management emphasises the importance of maintaining strong community and stakeholder relationships, including commitments to local Indigenous groups. The company also plans to leverage Casa Berardi’s exploration upside to extend mine life and unlock further value.

Regulatory and Reporting Considerations

The transaction is expected to close in the first quarter of 2026, pending regulatory approvals from Canadian and Australian authorities. Notably, the mineral resource and reserve estimates for Casa Berardi are reported under Canadian NI 43-101 standards and have yet to be verified under the JORC Code, which governs Australian reporting. Orezone intends to undertake this verification process during 2026, which will be closely watched by investors and analysts.

This acquisition marks a defining milestone for Orezone, expanding its asset base, enhancing its market profile, and setting the stage for future growth in a stable jurisdiction.