raymond james new comments 11:00 AM EST, 02/01/2021 (MT Newswires) -- Orezone Gold Corp. (ORE.V) shares rose more than 4% on Monday after announcing a $189 million financing package for its Bombore Project in Burkina Faso last week.
The Vancouver-based development company's package includes $96 million in senior secured debt, $35 million in convertible debt, and $58 million in equity.
Craig Stanley, an analyst at Raymond James, said the 8% cost on the $131 million of debt was below his estimate of 14% on $140 million.
He said the $74 million equity financing at $1.05 per share was above his estimate of $40 million at $1.00 per share.
"Importantly, the debt does not require hedging, offtakes, cash sweeps or cost overrun reserves, and allows flexibility to complete future expansions including the Phase II Sulphide Expansion," Stanley said in a note to clients. "Bombore continues to remain free of gold streams and private royalties."
The stock gained $0.04, or 4.1%, to $1.01 on the TSX Venture Exchange Monday.