Orezone Resources (OZN-T, OZN-X) has closed the first of what will be several multi-million dollar debt facilities that it will need to build its massive Essakane gold project in West Africa.
The emerging gold producer reported today that it has closed a US$40 million loan with The Standard Bank of South Africa.
The five-month debt facility will bridge finance Orezone as it completes a senior debt facility for US$300 million and an additional US$30 million cost overrun facility with Unicredit HVB and Standard Bank.
The loan has a coupon of Libor plus 4% and will be put towards capital expenditures at the Essakane gold project, which the company describes as the largest gold deposit in Burkina Faso.
According to definitive feasibility study, the mine will take about 18 months to build at a cost of about US$346 million.
Essakane contains 4 million oz. gold in the indicated category and 1.3 million oz. gold in the inferred, at a 0.5 gram gold per tonne cut-off.
The deposit, at the northern tip of the country, contains reserves of about 3 million oz. gold using a gold price of US$600 per oz.
Essakane remains essentially open and untested below 260 metres from surface and is surrounded by several satellites deposits.
In Toronto, Orezone shares currently are trading at 88 apiece and have a 52-week trading range of 75 -$1.96.
The emerging gold producer has 357.2 million shares outstanding.
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