Franco-Nevada arranges gold stream with Orezone

Executive Summary

• Franco-Nevada Corp. has entered into a $100 million gold stream financing transaction with Orezone Gold Corp. to support Orezone's acquisition of Hecla Mining Company's producing Casa Berardi gold mine and other Quebec assets.
• The transaction provides Franco-Nevada with immediate gold revenues from an established operation, featuring fixed deliveries for the first five years followed by variable percentages of production.
• The deal is expected to close in the first half of 2026, subject to customary conditions including the successful completion of Orezone's acquisition of the Casa Berardi mine.

Key Details

• Transaction Value: $100 million gold stream financing.
• Counterparties: Franco-Nevada Corp. (via a wholly owned Canadian subsidiary) and Orezone Gold Corp.
• Asset Coverage: The stream covers the Casa Berardi gold mine and other Quebec assets, including the Heva-Hosco gold project.
• Stream Deliveries:
  • Fixed Deliveries: 1,625 oz of gold per quarter (6,500 oz per year) for the first five years.
  • Variable Deliveries: 5.0% of gold produced from Casa Berardi and other Quebec assets (excluding Heva-Hosco); 2.5% of gold produced from Heva-Hosco.
• Payment Terms:
  • Orezone receives a continuing payment of 20% of the spot price for gold ounces delivered.
  • Financing of the $100 million deposit occurs upon closing.
  • Effective date of the stream is January 1, 2026.
  • First full quarter fixed delivery is due by the later of April 15, 2026, and closing.
• Security: The stream is secured and benefits from an Orezone parent guarantee.
• Rights: Franco-Nevada maintains a right of first refusal on future streams and royalties related to Casa Berardi and Heva-Hosco.
• Closing Conditions: Subject to customary conditions, including the successful completion of Orezone's acquisition of Casa Berardi, expected in H1 2026.
• Funding Source: Franco-Nevada intends to finance the transaction from cash on hand. As of September 30, 2025, Franco-Nevada held $900 million in cash and cash equivalents and $1.9 billion in available capital.
• Casa Berardi Reserve/Resource Data:
  • P&P Reserves: 1.3 million oz Au (14.4 million tonnes at 2.79 g/t Au).
  • M&I Resources (Exclusive of Reserves): 900,000 oz Au (4.7 million tonnes at 5.92 g/t Au).
  • Inferred Resources: 500,000 oz Au (2.4 million tonnes at 6.01 g/t Au).
• Heva-Hosco Resource Data:
  • M&I Resources: 1.2 million oz Au (30.3 million tonnes at 1.19 g/t Au).
  • Inferred Resources: 600,000 oz Au (14.6 million tonnes at 1.27 g/t Au).
• Historical Production: Casa Berardi has produced over 3.2 million ounces of gold to date with a 35-year mining history.

Notable Quotes

• Paul Brink, President and CEO, Franco-Nevada: "We are pleased to add another operating gold mine to our Canadian portfolio and to partner with Orezone on this transformative transaction... 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."
• Patrick Downey, CEO, Orezone: "We are honoured and excited to partner with Franco-Nevada on this transformational acquisition... Together, our vision is to establish Casa Berardi as a profitable, long-life mining camp for decades to come."