Ottawa, Canada — MININGREVIEW.COM — 05 September 2008 – Orezone Resources Incorporated – an emerging Canadian explorer and intermediate gold producer – has closed a US$40 million (R300 million) debt facility with The Standard Bank of South Africa Limited, and increased its interest in the Bombore project in Burkina Faso from 50% to 100%.
In a statement issued here, the company said this facility would be used to continue construction of the Essakane gold project – the largest gold deposit in Burkina Faso – while it moved to close the US$300 million (R2.25 billion) senior debt facility and a US$30 million (R225 million) cost overrun facility it had set up last month with Unicredit HVB and Standard Bank.
Essakane contains 4.0Moz of indicated resources and 1.3Moz of inferred resources at a 0.5g/t cut-off. Recoverable reserves contained within a US$600 gold price mine plan are 3.0Moz.
“We have drawn the full facility, and will put these funds towards the Essakane capital expenditures, which remain on budget,” said Orezone CEO Ron Little. “This bridge facility will allow us time to close the senior facility and to investigate all options for our final equity portion of the project financing.”
In other news, the Orezone statement confirmed that the company had consolidated a 100% interest in its Bomboré Project by purchasing the remaining 50% interest and net smelter royalty from Channel Resources Limited and Solomon Resources Limited for a total of one million Orezone common shares.
Bomboré – a 250 squ km property located 80 km east of the Burkina Faso capital – is a large tonnage, low-grade, oxide resource with heap-leach potential. It has a measured and indicated resource of 576 000 ounces and an inferred resource of 501 000 ounces. The company expects to provide an update to the resource estimate in the fourth quarter of 2008.
Orezone has a pipeline of developing projects, all located in politically stable areas of West Africa, which is one of the world’s fastest growing gold producing regions.