GOLD: Orezone announces $20M bought deal

[caption id="attachment_1003732937" align="aligncenter" width="625"] Bomboré project Credit: Orezone[/caption] TORONTO – Burkina Faso-focused developer Orezone Gold has announced a $20 million bought deal co-led by Canaccord Genuity and PI Financial. The underwriters will purchase a total of 37.1 million units with each unit comprised of one share and half a warrant. Proceeds are intended for advancing the Bomboré project and for working capital and corporate purposes. The underwriters have an option to acquire up to an additional 5.6 million units for proceeds of up to $3 million for 30 days following closing. Closing is expected around Jan. 29. The Bomboré gold project hosts a total oxide reserve of 52.5 million tonnes at 0.69 g/t gold for 1.2 million contained oz. with additional sulphide reserves of 17.6 million tonnes grading 1.19 g/t gold for a total of 675,000 oz. These are contained within a measured and indicated resource inventory of 107 million tonnes of oxides at 0.55 g/t gold and 123 million tonnes of sulphides at 0.8 g/t gold. Last year, the company released a feasibility study for Bomboré which outlined a staged oxide-sulphide project producing an average of 117,800 oz. of gold annually at all-in sustaining costs of US$730 per oz. The associated initial capital for the oxide portion of the project was estimated at US$153 million with an additional US$63 million allocated for the sulphide expansion starting operations in the third year. The associated net present value, at a 5% discount rate, has been estimated at US$361 million with a 43.8% internal rate of return. Orezone is currently planning on pouring first gold from Bomboré in the second half of next year. For more information, visit www.Orezone.com.