EURO Ressources invests US$7.15M to acquire silver stream on Orezone gold's Bombore project - Seite 2

The definitive silver purchase agreement (the “Stream Agreement”) will be with Orezone’s Burkina Faso subsidiary. Pursuant to the terms of the Stream Agreement:

       ·EURO will make a cash payment of US$7,150,000 to Orezone on the Stream Closing (defined below) as consideration for the purchase of 50% of the payable silver produced at Bomboré for life of mine.

• Orezone has granted a payment guarantee in favour of EURO to secure its obligations under the Silver Steam which shall require Orezone to deliver a minimum annual payment, commencing from the date of declaration of commercial production by Orezone, equivalent to 37,500 ounces of silver. Should there be a shortfall in the annual silver deliveries, to the extent any catch up payment is required, Orezone will make an initial catch up payment only on the later of: (a) the fifth anniversary from the date of the initial silver delivery under the Stream Agreement and (b) repayment of senior secured term loan for development of Bomboré to ensure the aggregate minimum annual payment has been satisfied for each of the preceding years. Thereafter, Orezone will only be required to make catch up payments on an annual basis until the delivery or payment of 375,000 ounces of silver, following which the minimum annual payment guarantee will no longer be applicable.
• If, within the first five years of the life of mine, Bomboré’s processing plant achieves an average production rate with respect to sulphide ore of 3,300,000 tpa, Orezone has the right to reacquire 50% of the Silver Stream from EURO for US$7,150,000.
• EURO has a right of first refusal, for the life of mine, over any further silver production from Bomboré that has not been purchased by EURO pursuant to the Silver Stream.
• The completion of the Silver Stream is subject to standard precedent conditions for a transaction of this nature.

Expected Closing

Acquisition of the Silver Stream is expected to close in the second quarter of 2021 (“Stream Closing”), and EURO intends to fund the US$7,150,000 investment through current cash on hand.

Bomboré Project

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. The 2019 feasibility study highlights Bomboré as an attractive shovel-ready gold project with forecasted annual gold production of 118,000 ounces over a 13+ year mine life at an AISC of US$730/ounce with an after-tax payback period of 2.5 years at an assumed gold price of US$1,300/ounce. Bomboré is underpinned by a mineral resource base in excess of 5 million ounces of gold and possesses significant expansion potential.