AlldollaramountsareinUSDunlessotherwiseindicatedandabbreviation"M"meansmillion.
- Strategic acquisition of an established operating gold mine, located in a Tier 1 mining jurisdiction
- Positions Orezone as a diversified multi-asset producer, adding material scale, production and free cash flow
- Acquisition builds on Orezone's strong track record of operating and development success, providing an excellent platform for future growth and value creation
VANCOUVER, British Columbia, March 25, 2026 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX: ORE| ASX: ORE | OTCQX: ORZCF) ("Orezone" or "Company") is pleased to announce that the Company has completed its acquisition (the "Transaction") of Hecla Quebec Inc. ("Hecla Quebec"), a wholly owned subsidiary of Hecla Mining Company ("Hecla Mining"). Through this Transaction, Orezone has acquired 100% ownership of the operating Casa Berardi gold mine and a portfolio of exploration properties, all located in Quebec, Canada (the "Acquired Properties").
Patrick Downey, President & CEO, commented: "This acquisition marks a strategic and transformational expansion into a Tier 1 jurisdiction for Orezone. The addition of Casa Berardi, a proven and cash-flow-generating mine, together with the Quebec exploration portfolio, positions the Company as a diversified multi-asset producer, with an established and self-funded growth profile. Consistent with recent acquisitions of non-core Canadian operating mines, we believe this transaction represents a defining milestone that will generate meaningful value for all stakeholders. Assets acquired in the Transaction include:
- The Casa Berardi mine, which has produced over 3.2 million oz of gold to date and hosts an established resource and reserve base of 1.2Moz (M+I) and 1.2Moz (P+P), respectively,1,2, 3
- Heva-Hosco, an advanced stage exploration project underpinned by an M&I resource of 1.2Moz and Inferred resource of 0.7Moz located along the prolific Cadillac-Larder Lake Break,4
- The early stage Duverny project located to the north of Val d'Or along the Chicobi Break, and
- The Opinaca-Wildcat properties located in the James Bay region of Quebec, near the producing Eleonore mine.
Orezone's near-term focus at Casa Berardi will be to optimize current operations and to commence trade-off studies in support of ramping-up underground production utilizing existing infrastructure. In parallel, the Company plans to initiate a multi-year exploration drill program of 80,000 - 100,000 metres per annum, targeting multiple high-grade down plunge extensions and further delineation of several near-mine zones of mineralization.
As we embark upon this next chapter at Casa Berardi, I want to welcome all employees of Hecla Quebec to the Orezone team. We are excited to continue to advance the long-term success of the Casa Berardi mine for the benefit of all project stakeholders, including the local communities and Abitibiwinni First Nation."
TRANSACTION SUMMARY
As further detailed in the Company's press release dated January 26, 2026, consideration for the Transaction consisted of upfront and deferred consideration of $352M and contingent consideration of up to $241M.
On closing, the Company paid $160M in cash and issued 65,757,265 common shares to 1576447 B.C. Unlimited Liability Company, a direct wholly-owned subsidiary of Hecla Mining, representing 9.9% of the post-closing shares of Orezone. Consideration further consists of $80M in deferred cash payments due at 18 months and 30 months following closing of the Transaction and contingent consideration consisting of $10M linked to gold prices, and $231M based on permitting and future gold production from the proposed Principal and WMCP open pits at Casa Berardi.
TRANSACTION FINANCING
The Transaction takes advantage of Orezone's strong balance sheet and free cash flow from its Bomboré mine. The cash paid on closing was funded from cash on hand and a gold stream in respect of the Acquired Properties (the "Gold Stream") entered into concurrently with an affiliate of Franco-Nevada Corporation ("Franco-Nevada"). Pursuant to the Gold Stream, Franco-Nevada provided an upfront deposit of $100 million upon the closing of the Transaction (the "Deposit").
Pursuant to the terms of the Gold Stream, Orezone will make fixed deliveries of 1,625 ounces of gold per quarter from 2026 to 2030, after which the stream percentage will be 5.0% of gold production from the Acquired Properties (other than in respect of certain properties for which the percentage will be 2.5%). Until the Deposit has been reduced to nil, Franco-Nevada will purchase refined gold from Orezone at the spot gold price for each ounce of refined gold delivered with 20% payable in cash and 80% payable as a reduction against the Deposit. After the Deposit has been reduced to nil, Franco-Nevada will purchase refined gold from Orezone at 20% of the spot gold price for each ounce of refined gold delivered to Franco-Nevada pursuant to the Gold Stream.
NEXT STEPS
- The Casa Berardi operation, and portfolio of exploration properties, will be integrated into Orezone through 2026. The Company plans to provide updated 2026 guidance in the second quarter to include the Casa Berardi mine.
- The Company has initiated trade-off studies to evaluate (1) further optimization of the current mine plan and (2) an increase in underground production utilizing established infrastructure. Orezone plans to publish an updated mine plan and economic study in the fourth quarter of 2026.
- Planning and preparations to reinitiate exploration drilling at Casa Berardi are now underway, with initial targeting of down plunge extensions of high-grade mineralization to commence in the second quarter. This exploration program will be incrementally expanded, with the goal of achieving 80,000 - 100,000 metres of drilling per annum over the next several years.
ABOUTOREZONEGOLDCORPORATION
Orezone Gold is an emerging intermediate gold producer with operations in Canada and West Africa. Its Casa Berardi and Bomboré gold mines host significant mineral endowments, growth opportunities, and exploration upside. The recently acquired Casa Berardi mine in Quebec has produced over 3.2Moz of gold to date, with the Bomboré mine constructed and brought into production by Orezone in late 2022.
Orezone is led by an experienced management team committed to safe, sustainable, and responsible mining practices, with a focus on delivering long-term value for all stakeholders.
