Orezone’s Bold Leap: Casa Berardi Acquisition Sets Stage for Growth

Strategic Expansion into Canada’s Premier Gold District

Orezone Gold Corporation has taken a decisive step to broaden its footprint with the acquisition of the Casa Berardi gold mine and associated exploration projects in Quebec from Hecla Mining. This move not only diversifies Orezone’s asset base but also positions the company firmly within a Tier 1 mining jurisdiction renowned for its stable regulatory environment and rich mineral endowment.

The deal involves an upfront cash and equity consideration of US$272 million, supplemented by deferred payments of US$80 million and contingent payments potentially reaching US$241 million, tied to gold price milestones and production outcomes. Financing is bolstered by a US$100 million streaming agreement with Franco-Nevada Corporation, underscoring strong market confidence in the transaction’s value proposition.

Casa Berardi – A Proven Asset with Growth Potential

Casa Berardi boasts a long operational history, having produced over 3.2 million ounces of gold across three decades. The mine currently holds 1.3 million ounces in proven and probable reserves and 2.1 million ounces in measured and indicated resources, supported by well-established underground and open-pit infrastructure. Orezone plans to capitalise on this foundation by optimising existing operations, including ramping up underground exploration to increase head grades and production levels.

Moreover, the acquisition includes a portfolio of exploration projects such as the advanced Heva-Hosco deposit, offering substantial upside potential. The company’s strategy involves advancing permitting for the Principal and West Mine Crown Pillar (WMCP) open pits, which could extend open-pit mining activities beyond the current 2026 horizon and unlock over one million ounces of additional gold resources.

Production and Financial Outlook

Orezone’s consolidated production guidance for 2026 now stands at 230,000 to 250,000 ounces of gold, combining output from Casa Berardi and its existing Bomboré mine in Burkina Faso. This marks a significant increase from previous forecasts and establishes Orezone as an emerging mid-tier gold producer with a diversified geographic footprint.

Financially, the transaction is accretive on key operating and per-share metrics, with the backing of Franco-Nevada’s streaming deal providing liquidity and risk mitigation. The company’s balance sheet remains robust, and the acquisition is expected to enhance its capital markets profile, potentially triggering a re-rating relative to peers.

Challenges and Next Steps

While the acquisition offers clear strategic benefits, it is contingent on customary regulatory approvals from the TSX, ASX, and Canadian Competition Act authorities, with closing anticipated in the first quarter of 2026. Additionally, Orezone will undertake a thorough verification of the mineral resource estimates under the JORC Code, as current figures are reported under Canadian NI 43-101 standards.

Looking ahead, Orezone’s focus will be on integrating Casa Berardi’s operations, advancing exploration programs to unlock higher-grade zones, and progressing permitting for open-pit expansions. These efforts will be critical to realising the full value of the acquisition and delivering on the company’s growth ambitions.