Orezone Closes C$73.75 Million Bought-Deal Offering

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VANCOUVER, British Columbia, Jan. 28, 2021 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) (the “Company”) announces that it has completed its previously announced bought deal equity financing (the “Offering”) for aggregate gross proceeds of C$73,754,625.

The Offering was co-led by Canaccord Genuity Corp. and CIBC Capital Markets, and included Raymond James Ltd., PI Financial Corp. and Sprott Capital Partners LP (collectively the “Underwriters”). The Underwriters received a cash commission equal to 4% of the gross proceeds of the Offering.

Pursuant to the Offering, the Company issued 61,950,000 common shares (“Shares”) at a price of C$1.05 per Share for gross proceeds of C$65,047,500. The Underwriters also exercised the over-allotment option to purchase an additional 8,292,500 Shares for gross proceeds of C$8,707,125.

Resource Capital Fund VII L.P. (“RCF VII”), which has a participation right pursuant to the terms of an investor rights agreement dated March 23, 2018, exercised its right and, as a result, following closing of the Offering, owns 19.28% of the total issued and outstanding Shares.

The Offering was completed pursuant to the Company’s final base shelf prospectus dated November 3, 2020 and the prospectus supplement filed on January 25, 2021 with securities regulators in each of the provinces of Canada, other than Québec.

Following completion of the Offering, the Company will work to close its previously announced US$96 million senior secured debt facility with Coris Bank International and the US$35 million convertible note with RCF VII and Beedie Investments Ltd. to fully fund Bomboré into production. The Company intends to use the net proceeds from the Offering for the development and construction of the Bomboré Project as well as for general corporate purposes.  

Investor Webinar

Thursday, January 28^th at 11:00 am PST/2:00 pm EST

The Company will host an investor webinar today at 11:00 am PST / 2:00 pm EST to discuss the project financing package and next steps in the development and construction of Bomboré. To register for the webinar, please click here.

About Orezone Gold Corporation

Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) is a Canadian development company which owns a 90% interest in Bomboré, one of the largest undeveloped gold deposits in Burkina Faso.