Orezone Secures Term Loan for Major Expansion at Bomboré Mine

Orezone Gold Corporation Closes Phase II Term Loan

Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) has announced a significant development in its operations. The company has successfully closed on its Phase II Term Loan with Coris Bank International, valued at approximately XOF 35.0 billion (around US$58 million). This financial backing is a crucial step toward advancing the Phase II Hard Rock Expansion at the Bomboré Mine, where the initial gold production is anticipated in the near future.

Details of the Term Loan Agreement

Under the terms of the Phase II Term Loan, Orezone will enjoy a principal repayment deferment until January 2026. This timing aligns perfectly with the expected commercial production of the new hard rock plant. The loan carries an interest rate of 11.0% per annum over a three-year period, allowing the company to draw down funds as necessary throughout 2025. Notably, with strong cash flows from operations this quarter, Orezone has also managed to repay a previous US$20 million bridge loan.

CEO's Perspective on the Expansion

Patrick Downey, the President and CEO of Orezone, expressed gratitude towards Coris Bank for their unwavering support. He stated, "The Phase II Hard Rock Expansion is now well advanced. Once operational, it will significantly boost our annual gold production, increasing from the current range of 110,000 to 125,000 ounces to over 170,000 ounces." This ambitious goal reflects the company’s commitment to growth and improving operational efficiencies.

Amendment of Convertible Debentures

To facilitate the successful closing of the Phase II Term Loan, Orezone has negotiated amendments to its ongoing convertible debentures. These changes, which involve adjusting the conversion price down to US$0.70 per common share from US$1.08, were necessary to obtain consent from debenture holders. This is categorized as a 'related party transaction,' governed by specific Canadian regulations designed to protect minority interests.

Strategic Financial Management

The amendments made for the convertible debentures and the management of the recent loan indicate Orezone’s strategic approach to maximizing its resources and partnerships effectively. Following the completion of the amendments, the necessary material change report will be filed, providing transparency about the transaction and protecting the interests of all stakeholders involved.

Exploring Future Prospects for Orezone

As the hard rock expansion progresses, Orezone is well positioned for future growth and operational success. This strategic financing and positive operational outlook suggest that Orezone's commitment to enhancing value for its shareholders and stakeholders remains steadfast. The company’s ability to adapt and implement significant projects like the Bomboré expansion will be instrumental in its journey in the gold mining sector.

Contact Details for Orezone Gold Corporation

For more information or inquiries, interested parties can reach out to Orezone Gold Corporation. Key contacts include:

Patrick Downey
President and Chief Executive Officer

Vanessa Pickering
Manager, Investor Relations

Phone: 1 778 945 8977 / Toll-Free: 1 888 673 0663
Email: info@orezone.com

Frequently Asked Questions

What is the purpose of the Phase II Term Loan?

The Phase II Term Loan is aimed at financing the hard rock expansion project at the Bomboré Mine, improving gold production capabilities.

When is the expected start of gold production from the expansion?

First gold production from the Phase II expansion is scheduled for 2025.

What is the new conversion price for Orezone's debentures?

The conversion price has been revised to US$0.70 per common share.

Who is Orezone's partner for the term loan?

Orezone partnered with Coris Bank International for the Phase II Term Loan agreement.

What is the projected annual gold production increase with the expansion?

The expansion is expected to increase Orezone's annual gold production to over 170,000 ounces.

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