Orezone Gold has entered into a binding letter of intent for a silver streaming agreement with EURO Resources S.A. to sell 50% of the future payable silver production from the Bomboré Gold Project for an upfront cash payment of US$7,150,000.
“We are very pleased to announce this silver stream transaction with EURO. The Bomboré project offers tremendous exploration potential and merits further drilling and this transaction provides immediate funds for such work,” says says CEO Patrick Downey.
“Despite the lack of comprehensive silver assay data for the Bomboré project, current management has always been aware of the presence of silver and recent work with EURO has provided a platform to unlock this value.
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“This non-dilutive source of capital is a very positive outcome for our shareholders and will allow us to continue demonstrating the exploration potential of Bomboré during project construction.
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“I am also pleased to complete this unique deal with EURO, whose team is very familiar with Burkina Faso and our Bomboré project.”
- Realizes value for silver not included in the 2019 feasibility study – The value of the silver is not included in the 2019 Bomboré feasibility study due to a lack of assay data. This streaming deal now unlocks that value while allowing the Company to participate in the remaining 50% silver values;
- Provides immediate cash for exploration at Bomboré – The upfront sale of the silver stream will allow the Company to conduct exploration drilling on near-term oxide targets and newly identified high-grade sulphide targets;
- Does not impact project debt package of the Bomboré project – The previously announced debt financing package is based solely on the gold economics and does not incorporate the silver;
- Stream buyback at Orezone’s option – Orezone retains the option to buy back 50% of the silver stream thereby maintaining additional exposure to the metal in a rising commodities environment.