Orezone Gold Completes Strategic Acquisition of Casa Berardi Gold Mine and Quebec Exploration Portfolio

Executive Summary

• Orezone Gold Corp. completed the acquisition of Hecla Quebec Inc., gaining 100% ownership of the operating Casa Berardi gold mine and several exploration properties in Quebec.
• Total consideration was $352 M upfront/deferred cash plus up to $241 M contingent payments; closing involved a $160 M cash payment and issuance of ~65.8 M common shares (9.9% post‑closing ownership).
• The deal is financed partly by a gold stream with Franco‑Nevada, which provided a $100 M deposit and will purchase up to 1,625 oz of gold per quarter at spot price (20% cash, 80% against the deposit) through 2030.

Key Details

• Acquired Assets
• Casa Berardi mine – >3.2 Moz historic production; 1.2 Moz Measured & Indicated and 1.2 Moz Proven & Probable reserves.
• Heva‑Hosco project – M&I resource of 1.2 Moz, Inferred 0.7 Moz along Cadillac‑Larder Lake Break.
• Duverny early‑stage project (Chicobi Break).

• Opinaca‑Wildcat properties near Eleonore mine (James Bay region).

• Transaction Consideration

• Upfront cash: $160 M paid at closing.
• Share issuance: 65,757,265 common shares to Hecla Mining subsidiary (9.9% of post‑closing equity).
• Deferred cash: $80 M payable in two installments (18 mo & 30 mo after close).

• Contingent consideration: up to $10 M tied to gold price and $231 M linked to permitting/production from proposed open pits at Casa Berardi.

• Gold Stream Financing

• Franco‑Nevada provided a $100 M deposit concurrent with closing.
• Orezone will deliver 1,625 oz of refined gold per quarter (2026‑2030); thereafter, Franco‑Nevada purchases 5.0% of production (2.5% for certain properties).

• Payments: 20% cash, 80% reduction against the deposit while deposit remains; after depletion, purchase price is 20% of spot gold price.

• Operational Plans

• Immediate focus on optimizing Casa Berardi operations and conducting trade‑off studies to increase underground production using existing infrastructure.
• Initiate a multi‑year drill program targeting 80,000–100,000 m per year to extend high‑grade zones and delineate near‑mine mineralization.

• Updated 2026 guidance to be released in Q2; revised mine plan/economic study slated for Q4 2026.

• Strategic Rationale

• Expands Orezone into a Tier 1 jurisdiction, creating a diversified multi‑asset portfolio with immediate cash‑flow generation and significant growth upside.
• Leverages strong balance sheet and free cash flow from the Bomboré mine to fund the acquisition without dilutive financing beyond the share issuance already disclosed.

Notable Quotes

• Patrick Downey, President & CEO: “This acquisition marks a strategic and transformational expansion into a Tier 1 jurisdiction… The addition of Casa Berardi, a proven and cash‑flow‑generating mine… positions the Company as a diversified multi‑asset producer with an established and self‑funded growth profile.”

Materiality: Material – Positive (the acquisition materially expands Orezone’s asset base, production capacity, and free cash flow.)