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

On January 26, 2026, Orezone Gold Corporation announced a definitive agreement to acquire Hecla Quebec Inc., including the producing Casa Berardi gold mine and a portfolio of exploration properties in Quebec, Canada. The total upfront consideration is valued at US$352 million, comprising US$160 million in cash, US$112 million in Orezone shares (65,757,265 shares at C$2.33 per share, representing 9.9% post-issuance ownership), and US$80 million in deferred cash payments (US$30 million at 18 months and US$50 million at 30 months post-closing). Additional contingent consideration of up to US$241 million is linked to gold price thresholds and future production from the Principal and WMCP open pits. The upfront cash portion is funded by cash on hand and a US$100 million gold stream from Franco-Nevada Corporation. The stream requires fixed quarterly deliveries of 1,625 oz of gold for the first five years, then 5.0% of production thereafter, with Orezone receiving 20% of the spot gold price per ounce delivered. Closing is expected in Q1 2026, subject to regulatory approvals.

This acquisition is transformational for Orezone, fundamentally altering its risk profile and growth trajectory. It immediately adds a producing asset in the Tier-1 mining jurisdiction of Quebec, diversifying away from sole reliance on the Bomboré mine in Burkina Faso, which carries elevated political risk. Casa Berardi brings 2026 production guidance of 83,000–91,000 ounces, proven and probable reserves of 1.3 million ounces, and a 5-year average production of approximately 106,100 ounces. Combined with Bomboré's forecasted 170,000–185,000 ounces in 2026, pro forma production approaches 260,000 ounces, positioning Orezone as a emerging mid-tier producer.

The deal structure limits immediate equity dilution, with the share component representing only 9.9% of the enlarged capital. However, the US$100 million gold stream from Franco-Nevada, while providing low-cost capital, imposes a significant long-term cost on Casa Berardi's cash flow. The deferred cash payments (US$80 million) and substantial contingent liabilities (up to US$241 million) create future financial obligations that must be serviced from operational cash flow or additional financing.

Financially, the acquisition is accretive to reserves and resources, adding 1.3 million ounces of reserves and over 2 million ounces of measured and indicated resources. Strategically, it demonstrates management's ability to execute a complex transaction and partners with a leading royalty company, enhancing credibility. However, integration risks exist as Orezone's operational experience is primarily in West Africa, not Canada. The deal also consumes a portion of Orezone's strong cash balance (US$85.3 million at Q3-2025 end) and may impact its ability to fully self-fund the planned Stage 2 expansion at Bomboré (estimated US$90–95 million).

Orezone Gold Corporation is a gold producer focused on its 90%-owned Bomboré gold mine in Burkina Faso. The mine achieved commercial production from oxide operations in December 2022. The Stage 1 hard rock expansion (2.5 Mtpa) was completed with first gold poured in December 2025, forecast to increase annual production by approximately 45% to 170,000–185,000 ounces in 2026. A planned Stage 2 expansion aims to increase hard rock throughput to 5.5 Mtpa, targeting 220,000–250,000 ounces annually. Bomboré hosts a global resource base of approximately 5 million ounces, with a long-term exploration goal of 7–10 million ounces.