Franco-Nevada announced it has entered into a $100 million gold stream financing transaction with Orezone Gold Corporation to support Orezone’s planned acquisition of Hecla Mining Company’s producing Casa Berardi Gold Mine and Hecla’s other Quebec assets, including the Heva-Hosco Gold Project. The companies said the stream is expected to add immediate gold revenue exposure tied to an established Canadian operation, while giving Orezone additional capital to pursue a “transformational” expansion and exploration program around Casa Berardi and the broader land package.
Casa Berardi, located in Quebec’s Abitibi region, has operated for roughly 35 years across surface and underground mining and has produced more than 3.2 million ounces of gold to date, according to the announcement. The mine hosts proven and probable reserves of 1.3 million ounces (14.4 Mt at 2.79 g/t Au), plus additional measured and indicated resources excluding reserves of 0.9 million ounces (4.7 Mt at 5.92 g/t Au) and inferred resources of 0.5 million ounces (2.4 Mt at 6.01 g/t Au). Heva-Hosco was described as a second large resource base, with 1.2 million ounces of measured and indicated resources (30.3 Mt at 1.19 g/t Au) and 0.6 million ounces of inferred resources (14.6 Mt at 1.27 g/t Au).
Under the terms, Franco-Nevada will provide a $100 million deposit at closing, with the stream’s effective date set as January 1, 2026. Deliveries to Franco-Nevada are structured as fixed deliveries of 1,625 ounces of gold per quarter—6,500 ounces per year—for the first five years. After that initial period, deliveries shift to variable amounts equal to 5.0% of gold produced from the Casa Berardi mine and other Quebec assets (excluding Heva-Hosco), plus 2.5% of gold produced from Heva-Hosco. Gold delivered under the stream will be subject to an ongoing payment to Orezone equal to 20% of the spot gold price.
The stream will be secured and will benefit from an Orezone parent guarantee, and Franco-Nevada will also receive a right of first refusal on future streams and royalties related to Casa Berardi and Heva-Hosco. The first full-quarter fixed delivery is due by the later of April 15, 2026, and closing. Closing remains subject to customary conditions, including the successful completion of Orezone’s acquisition of the assets from Hecla, which the parties expect to occur in the first half of 2026.
Franco-Nevada intends to fund the deposit from cash on hand, noting it had $0.9 billion in cash and cash equivalents and $1.9 billion in available capital as of September 30, 2025. Orezone, a West African gold producer operating the Bomboré Gold Mine in Burkina Faso, said combined production from its oxide and stage 1 hard rock operations is forecast at 170,000 to 185,000 ounces in 2026, and that it is advancing stage 2 of its hard rock expansion, which is forecast to lift annual production to 220,000 to 250,000 ounces.
KEY QUOTES
“We are pleased to add another operating gold mine to our Canadian portfolio and to partner with Orezone on this transformative transaction,” said Paul Brink, President & CEO of Franco-Nevada. “Patrick and the Orezone team are proven operators and developers, and we are excited to partner with them as they build Casa Berardi’s next chapter.”
Paul Brink, President & CEO, Franco-Nevada
“We are honoured and excited to partner with Franco-Nevada on this transformational acquisition. We worked very closely with the Franco-Nevada team throughout the process and are confident that this partnership will generate significant value for both companies and all stakeholders. We are enthusiastic about the near-term opportunities to enhance value and see substantial exploration upside at Casa Berardi and across its surrounding land package. Together, our vision is to establish Casa Berardi as a profitable, long-life mining camp for decades to come.”
Patrick Downey, CEO, Orezone
