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Positions Orezone as a diversified multi-asset producer, adding material scale, production and free cash flow
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Acquisition builds on Orezone’s strong track record of operating and development success, providing an excellent platform for future growth and value creation
Orezone Gold Corporation 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”).
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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.”
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