Orezone Gold Corporation (TSXV:ORE) has entered into an agreement with Canaccord Genuity Corp. and PI Financial Corp. to act as co-lead underwriters for a bought deal public offering to raise total aggregate gross proceeds of C$20,034,000.
The company said it intends to use the net proceeds from the Offering to advance its Bomboré project in Burkina Faso towards production, as well as for working capital and general corporate purposes.
Orezone Gold Corporation owns a 90% interest in the development stage Bomboré project with the government of Burkina Faso retaining a 10% carried interest.
Bomboré, one of the largest undeveloped gold deposits in Burkina Faso, hosts a large oxide resource underlain by a larger, open sulphide resource, and will be developed in two stages.
Bomboré is situated 85 km east of the capital city of Ouagadougou and is readily accessed by paved international highway thereby offering excellent infrastructure and simple logistics. Bomboré hosts large Free Digging oxide resources underlain by higher-grade sulphide resources.
On June 26, 2019 the company announced an updated Feasibility Study which outlined a long-life, low cost open pit gold mine for Bomboré.
The Feasibility Study highlights included: (at Base Cast gold price of $1300/oz. All reported figures are in US dollars and are on a 100% project basis unless otherwise stated)
- Pre-tax NPV5% of $513.5M and IRR of 61.9% with a 1.5-year payback
- After-tax NPV5% of $361.0M and IRR of 43.8% with a 2.5-year payback
- Mine life of 13+ years with life-of-mine (“LOM”) gold production of 1.6M ounces and average annual production of 133.8k ounces in the first 10 years
- Initial project construction costs estimated at $153.0M
- First gold pour targeted for June 2021
- LOM expansion capital costs of $63.2M
- LOM sustaining capital costs of $66.2M
- LOM cash costs of $681/oz with cash costs of $629/oz in the first 10 years
- LOM AISC of $730/oz with AISC of $672/oz in the first 10 years