Orezone Gold Secures Term Loan for Major Expansion of Operations
Orezone Gold Corporation Makes Significant Progress
Recently, Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) announced that it has successfully closed a term loan aimed at accelerating the Phase II Hard Rock Expansion at its Bomboré Mine. This innovative financing deal is a major step towards increasing production levels of gold, as Orezone moves closer to its target of the first gold pour scheduled for the fourth quarter of 2025.
Details of the Phase II Term Loan
The term loan, amounting to XOF 35 billion, which is approximately US$58 million, has been secured with Coris Bank International. This financial support comes with an annual interest rate of 11% and a repayment term extending over three years, with repayments commencing in January 2026. This timeline aligns with the expected commencement of commercial production at the newly expanded hard rock plant.
Recent Financial Developments
Orezone has also leveraged its strong cash flow situation to repay a US$20 million bridge loan that was previously drawn in May. This move highlights the company’s commitment to maintaining a solid financial posture while advancing its development projects. By responsibly managing its finances, Orezone positions itself for sustainable growth.
Presidential Insight
Patrick Downey, the President and CEO of Orezone, expressed gratitude towards Coris Bank for their continued support. He mentioned that the ongoing expansion at the Bomboré Mine is showing rapid progress. This expansion is expected to boost annual gold production significantly, forecasting an increase to over 170,000 ounces, up from the current output of between 110,000 to 125,000 ounces.
Convertible Debenture Adjustments
To facilitate the completion of the term loan, Orezone has amended certain terms associated with its convertible debentures. The most notable amendment is the adjustment of the conversion price which has been modified from US$1.08 to US$0.70 per common share. This strategic move has been designed to secure the necessary consent of debenture holders, demonstrating the company’s proactive approach in stakeholder engagement.
The Importance of Corporate Governance
The company has recognized the importance of compliance in its financial maneuvers, classifying the amendment to the debenture as a related party transaction under Canadian securities regulations. Orezone is utilizing a specific exemption due to the fair market value of the transaction not exceeding a critical threshold.
Looking to the Future
Orezone Gold Corporation is committed to transparency and timely reporting. A material change report regarding the debenture amendment will soon be filed, reinforcing its dedication to keeping investors informed. The company believes that acting promptly was crucial for securing the necessary permissions from debenture holders, showcasing a responsible approach to governance.
Contact Information
If you wish to learn more about Orezone Gold Corporation, please do not hesitate to reach out for additional information. Key contacts are:
Patrick Downey,
President and Chief Executive Officer
Vanessa Pickering,
Manager, Investor Relations
Telephone: 1 778 945 8977
Toll-Free: 1 888 673 0663
Email: info@orezone.com
Frequently Asked Questions
What is the primary goal of the Phase II Term Loan?
The loan aims to fund the Phase II Hard Rock Expansion at the Bomboré Mine, enhancing gold production capabilities.
Who provided the term loan for Orezone?
The term loan was secured from Coris Bank International, a key financial partner for the company.
What is the anticipated annual production after the expansion?
Following the completion of the expansion, Orezone expects annual gold production to exceed 170,000 ounces.
Have there been any recent financial improvements?
Yes, Orezone has repaid a US$20 million bridge loan, reflecting strong cash flow management.
Who are the key contacts for Orezone Gold Corporation?
Patrick Downey and Vanessa Pickering are the main contacts, available for any inquiries regarding the company.
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