Orezone Gold Secures $8.8 Million for Growth and Expansion
Orezone Gold Corporation's Recent Fundraising Initiative
In a significant development, Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) has announced a major fundraising initiative aimed at bolstering its operations. The company has confirmed that Nioko Resources Corporation will subscribe for 10,719,659 common shares at a price of C$0.82 per share, leading to total gross proceeds of approximately C$8.8 million. This strategic move is aimed at maintaining Nioko's 19.9% ownership in Orezone.
Details of the Private Placement
The announced placement is conducted on a non-brokered private basis. The offering price reflects the current market value of the shares, which is consistent with Orezone's recent bought deal offering. This funding is crucial for Orezone as it gears further towards its ambitious projects.
Impact of the Investment
Patrick Downey, the President and CEO of Orezone, expressed his satisfaction with Nioko's ongoing support. He noted that Nioko, an investment group based in West Africa, recognizes the potential of Orezone's growth strategy. The funds will not only support the company's current operations but also facilitate its plans for a dual listing on the Australian Securities Exchange, aiming to enhance its profile in the capital markets.
Utilization of Proceeds
The funds generated from this placement will play a pivotal role in accelerating two key areas: the Stage II hard rock expansion and further exploration at Orezone's flagship Bomboré Gold Mine. Additionally, the capital will be allocated for general working capital purposes, vital for the company's continuous operational success.
Regulatory Compliance and Conditions
The placement is conditional upon receiving approval from the TSX. Shares issued will be subject to a four-month restriction period post-closing. Orezone has confirmed that no finder’s or broker fees will be incurred from this transaction, aligning with its approach to efficient capital management.
Understanding Orezone's Operations
Orezone Gold Corporation is actively involved in the gold production industry in West Africa, particularly focusing on its flagship Bomboré Gold Mine located in Burkina Faso. The mine commenced commercial production in December 2022 and has since shifted its focus toward a staged hard rock expansion designed to significantly augment its annual gold output and extend the mine's lifespan.
Company Leadership and Social Responsibility
Led by a seasoned management team, Orezone Gold is committed to responsible mining practices while ensuring sustainable operations. The team's expertise spans project construction, operational management, financing, and M&A activities, which are critical for navigating the complex landscape of the mining industry.
Additional Resources
For those interested in learning more about Orezone's future plans and ongoing projects, the technical report titled "Bomboré Phase II Expansion, Definitive Feasibility Study" is accessible on the company's website, providing valuable insights into its expansion strategies.
Contacting Orezone Gold Corporation
For further inquiries, interested parties can reach out to:
Patrick Downey
President and Chief Executive Officer
Kevin MacKenzie
Vice President, Corporate Development and Investor Relations
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
info@orezone.com
Frequently Asked Questions
What is the total amount Orezone Gold Corporation raised?
Orezone Gold Corporation raised C$8.8 million through a private placement.
Who participated in Orezone's recent financing?
Nioko Resources Corporation participated by subscribing for shares to maintain its ownership stake.
What is the purpose of the funds raised by Orezone?
The funds will be used for the hard rock expansion project and exploration at the Bomboré Gold Mine.
What exchanges are Orezone shares listed on?
Orezone shares are listed on TSX and OTCQX as ORE and ORZCF, respectively.
How long will the new shares be subject to a hold period?
The new shares will have a hold period of four months from the date of closing.
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