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Orezone Gold Announces Closing of Bomboré Project Financing Package
VANCOUVER, British Columbia, Oct. 18, 2021 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX.V: ORE, OTCQX: ORZCF) (the “Company” or “Orezone”) is pleased to an
About this update from Orezone Gold Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 18, 2021 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX.V: ORE, OTCQX: ORZCF) (the “Company” or “Orezone”) is pleased to announce that on October 15, 2021, it entered into definitive documents with respect to its previously announced Senior Debt Facility, Convertible Note Facility, and Silver Stream Agreement (the “Project Financing Package”). The Company has closed each of the Convertible Note Facility and the Silver Stream Agreement and anticipates making its first drawdown under the Senior Debt Facility at the end of 2021 following satisfaction of customary conditions precedent. The Project Financing Package for the Bomboré Gold Mine construction consists of: ~US$95 million (CFA 52.5 billion) senior secured debt facility with Coris Bank International (“Coris Bank”) with annual interest rates of 8.0% and 9.0%. US$35 million 8.5% convertible debentures issued to Resource Capital Fund VII L.P. (“RCF VII”) and Beedie Investments Ltd. (“Beedie Capital”) (the “Convertible Note Facility”). Silver stream agreement with Euro Ressources S.A. (“Euro”) to sell 50% of the future silver production from the Bomboré Gold Mine for an upfront cash payment of US$7.15 million. Mr. Patrick Downey, the Company’s President and CEO commented, “The closing of the Project Financing Package marks a major achievement for the Company as financing for the construction of Bomboré is now complete with a combination of funding sources that are relatively low cost, flexible, and shareholder friendly. I want to thank each of Coris Bank, RCF VII, Beedie Capital, and Euro for their considerable efforts, support, and cooperation in concluding these agreements. The Project Financing Package was structured to provide maximum flexibility for the Company to complete future expansions including the staged Phase II Sulphide Expansion, and to undertake on-going exploration on promising high-grade targets identified by recent drilling at Bomboré.” The Company would like to thank Cutfield Freeman & Co Ltd. (Financial Advisor) and Stikeman Elliott LLP (Legal Counsel) for their practical and valuable assistance throughout this process. The Convertible Note Facility (and the common shares of the Company (the “Common Shares”) that the Convertible Note Facility may be converted into) are subject to a hold period of four...