Marketwire
TORONTO, ONTARIO--(Marketwired - Oct. 30, 2013) -
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Orezone Gold Corporation (TSX:ORE) is pleased to announce that it has arranged a non-brokered private placement financing of C$5M. Under the terms of the placement, 10 million ordinary common shares of the Company will be issued at C$.50/share. Commitments have been made by investors and a company with a closing is expected in the next two weeks. Directors of the company may subscribe to 10% of the financing. No commissions or finder's fees will be paid in connection with the placement.
The proceeds of the offering will be used to advance various technical studies towards the completion of a Feasibility Study for an oxide only heap leach operation at the Company's Bomboré gold project located in Burkina Faso, West Africa, and for general corporate purposes. The company expects to update its Preliminary Economic Assessment before year-end and complete the Feasibility in 2014.
The offering of common shares is subject to a number of conditions, including, without limitation, the finalization of definitive subscription documentation and receipt of all regulatory approvals before closing, including the conditional approval of the Toronto Stock Exchange.
"We are very pleased to secure this financing and provide the necessary funds to advance the Bomboré FS," said Ron Little, President and CEO for Orezone.
About Orezone Gold Corporation
Orezone is a Canadian company with a gold discovery track record of +12 Moz and recent mine development experience in Burkina Faso, West Africa. The Company owns a 100% interest in Bomboré which is situated 85 km east of the capital city, adjacent to an international highway. Mineral resources are constrained within optimized open pit shells that span 11 km, and include 4.13 Moz of measured and indicated (125 Mt @ 1.03 g/t) and 1.03 Moz of inferred resources (35 Mt @ 1.00 g/t) with an average depth of drilling to only 120 meters. The Company is completing an NI 43-101 compliant Preliminary Economic Assessment ("PEA") for an oxide only heap leach operation at Bomboré in order to become a mid-tier gold producer.
Pascal Marquis, SVP Exploration and Ron Little, CEO are Qualified Persons under National Instrument 43-101 have reviewed the information in this release.
FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this release include statements regarding, among others; completing a non-brokered private placement financing, updating the PEA for the HL scenario, completing a FS at Bomboré, and becoming a mid-tier gold producer.
FORWARD-LOOKING STATEMENTS are based on certain assumptions, the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological and geotechnical data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. Comparisons between any resource model or estimates with the subsequent drill results are preliminary in nature and should not be relied upon as potential qualified changes to any future resource updates or estimates.
Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2012 and other continuous disclosure documents filed by Orezone since January 1, 2013 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.