Orezone takes a small interest in Ghana

Orezone Resources (OZN-T, OZN-A) is getting into gold exploration in Ghana via its newly acquired stake in Vancouver-based PMI Ventures (PMV-V).

In a release issued on May 3, Orezone’s president and chief executive, Ron Little, says the investment is about using Orezone’s technical expertise and financial resources to increase its presence in West Africa.

The Ottawa-based junior currently has its major assets in neighbouring Burkina Faso.

Orezone will acquire four million units at 25 per unit — each unit consists of one common share and one non-transferable share purchase warrant to purchase one additional common share of PMI at a price of 35 per share for a two year period.

Once closed Orezone will have an interest of roughly 8% or 14.6% on the exercise of its warrants.

Orezone can have a seat on PMI’s board so long as it holds a minimum of four million shares. The company says it will also participate in exploration budgeting and planning meetings in order to provide technical advice as requested by PMI.

Orezone also retains a right of first refusal on any of PMI’s projects in Ghana for one year and can partake in future financings.

PMI has a 86% interest in 520 sq. km of gold exploration concessions in southwest Ghana.

Since early 2003, PMI has spent over US$5 million consolidating and exploring there. Over the last two years the company identified roughly 25 large gold exploration targets.

A drill program for those targets is planned for later this year. Some of the targets have intersected gold in previous drillings, the best being an intersect over 23 metres grading 5.7 grams gold per tonne.

In Toronto on May 3, PMI’s shares were up roughly 9% to close at 35 on 175,000 shares.

Orezone was off 6.4% to $2.19 on roughly 416,000 shares traded.

Little describes the region as one of the fastest growing gold producing areas in the world.

“We now have significant exposure to high quality exploration plays in Burkina Faso through our own projects, in Niger through our investment in Greencastle Resources (VGN-V) and now Ghana through PMI Ventures,” Little said.