Thomson Geer advises Orezone on US$593M gold mine acquisition as high gold price drives sector activity

Thomson Geer has advised Orezone Gold Corporation on its acquisition of the Casa Berardi gold mine in Québec, Canada, for up to US$593 million – a transformational transaction that establishes ASX and TSX-listed Orezone as a diversified, multi-asset gold producer with operations in a Tier 1 mining jurisdiction.

The acquisition comes amid a surge in corporate activity across the gold sector, with record gold prices driving increased exploration, development and consolidation as miners seek to scale, extend mine life and enhance portfolio quality.

Thomson Geer’s Chambers and Legal 500-ranked Corporate and Energy & Resources teams are engaged across the full spectrum of activity in the sector, including capital raisings, initial public offerings, project and acquisition financings and mergers and acquisitions. Over the past 12 months, the firm has advised Australian and international firms on more than 15 significant transactions, including the A$2.2 billion merger of Westgold Resources and Karora Resources.

Thomson Geer Partner and resources industry lawyer Michael Bowen said record gold prices were underpinning strong momentum across the gold sector.

“Sustained strength in the gold price is driving increased exploration and development activity as producers look to convert resources into production. It is also attracting fresh capital into the sector, with investors seeking exposure to gold. That combination is translating into heightened M&A activity, particularly bolt-on acquisitions as miners look to scale, extend mine life and improve portfolio quality.”

Orezone has entered into definitive agreements to purchase the Casa Berardi Gold Mine by acquiring its owner Hecla Quebec Inc. with a deal structure including cash, Orezone shares and future payments based on targets being met. The acquisition adds a long-life, cash-flow-generating asset to Orezone’s Bombore Gold Mine in Burkina Faso, Africa, and materially increases its scale, production profile and exposure to the gold price.

Thomson Geer advised Orezone on the Australian legal and regulatory compliance aspects of the transaction

The team was led by Partner David Church who said: "This was a strategically important and technically complex acquisition for Orezone, bringing together M&A, financing and capital markets considerations across multiple jurisdictions.

“With gold prices at record levels, we are seeing a renewed focus on quality, cash-generative assets in stable jurisdictions, and this transaction is a clear example of that trend in action.”

The acquisition also saw funding assistance from leading gold-focused royalty and streaming company Franco-Nevada Corporation.

The Thomson Geer team also included Senior Associate Kajal Parmar.