Vancouver — Orezone Resources (ORZ-T) intends to raise up to $5 million in a bought deal with a syndicate of underwriters led by Canaccord Capital.
The company intends to sell 10 million units at 40 each. Each unit consists of one common share and one-half common-share purchase warrant. Each whole common share warrant would entitle the holder the right to purchase a common share for 60. The underwriters also have the option of buying an additional 2.5 million units for $1.0 million.
Orezone holds six gold projects in Burkina Faso, West Africa; Essakan, Sega, Bombore, Golden Hill, Bondi and Kerboule. The junior also holds two diamond projects in Canada and a iron oxide copper gold project in the Yukon.
The flagship property is the Essakan project, which represents the largest gold deposit in Burkina Faso. Gold Fields (GFI-N) has an option to earn a 50% interest in the project by spending US$8.0 million over 5 years. Orezone is the operator for the first $2.0 million and is 50% of the operation team until Gold Fields earns its interest. Once vested at 50%, Gold Fields can earn another 10% by completing a bankable feasibility study. Essakan hosts a 1.5 million oz. resource at 2.1 grams gold per tonne. The joint venture is planning a 10,000 metre drill program which is expected to commence in a few weeks.
Orezone also holds an option to earn a 100% interest in the Sega property from Repadre Capital (RPD-T). Repadre retains a 1% NSR. The property has resources of 300,000 oz. grading 3.0 grams gold per tonne and Orezone hopes to build this resource to 1.0 million oz. within the next couple of years.
On Orezone’s 100%-owned Golden Hill and adjoining Bondi properties (earning 100%), a previous drill intersection cut 22 metres averaging 11.4 grams gold per tonne and the hole ended in 10 grams gold per tonne material.
The junior stands to earn a 100% interest in the Bombore property. Bombore is one of the most advanced oxide gold deposits in Burkina Faso with total oxide resources estimated at just over 1 million oz. gold averaging 1.5 grams gold per tonne. Orezone plans to focus on higher grade areas and advance the project towards an economic pittable resource.
On its Kerboul project (75% and earning to 100%), Orezone has an inferred resource of 200,000 oxide oz. gold grading 1.4 grams gold per tonne. The project is adjacent to Resolute’s Belahouro property in Northern Burkina Faso, which hosts an oxide resource of 400,000 oz. at a grade of 3.1 grams gold.
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