HomeBusiness and policyOrezone closes Bomboré project finance package

Orezone closes Bomboré project finance package

Orezone Gold Corporation has entered into definitive documents with respect to its previously announced Senior Debt Facility, Convertible Note Facility, and Silver Stream Agreement.

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 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. and Beedie Investments
  • Silver stream agreement with Euro Ressources S.A. to sell 50% of the future silver production from the Bomboré Gold Mine for an upfront cash payment of US$7.15 million.

Patrick Downey, the Company’s President and CEO comments:

“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.”