Orezone Completes C$20.3 Million Bought Deal Offering

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VANCOUVER, British Columbia, Jan. 29, 2020 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSXV:ORE) (“Orezone” or the “Company”) is pleased to announce that it has completed its previously announced bought deal equity financing (the “Offering”). A total of 37,595,900 units (the “Units”) of the Company were issued at a price of C$0.54 per Unit for aggregate gross proceeds of C$20,301,786. Each Unit is comprised of one common share of the Company (each, a “Share”) ‎‎and one half of one common share ‎purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant ‎‎entitles the holder to acquire one common ‎share of the Company at a price of C$0.80 per share at any time on or before January 29, 2023. 

The Offering was co-led by Canaccord Genuity Corp. and PI Financial Corp. and included CIBC World Markets Inc., Raymond James Ltd., Cormark Securities Inc. and Paradigm Capital Inc. (collectively the “Underwriters”). The Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering. The Units were offered by way of a short-form prospectus in each of the provinces of Canada, except Québec.

Resource Capital Fund VII L.P., which has a pro rata right pursuant to the terms of an investor rights agreement dated March 23, 2018, exercised its right in full and, as a result, following closing of the Offering, owns 19.99% of the total issued and outstanding common shares of the Company.

Mr. Patrick Downey, the Company’s President and CEO stated, “Completion of this financing has significantly strengthened our balance sheet and provides the flexibility to continue all critical ongoing  activities to advance Bomboré towards production. We are also very pleased that RCF has demonstrated their further financial commitment in the Company and project. We intend to use the net proceeds from the Offering to fund the completion of the Phase I resettlement plan, ongoing detailed engineering and construction works, and general corporate purposes as we advance our project financing efforts towards securing binding debt commitments later this year.”