AUS
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Highlights
- Orezone to raise C$35 million through a bought deal offering of 42.68 million shares.
- Over-Allotment Option allows for an additional C$5.25 million in gross proceeds.
- Proceeds will accelerate Stage II expansion and exploration at Bomboré Gold Mine.
Orezone Gold Corporation (TSX:ORE) has entered into an agreement with Canaccord Genuity Corp. (the "Underwriter") to conduct a bought deal offering, aiming to raise a total of C$35,000,060. Under the agreement, Canaccord will purchase 42,683,000 common shares of the Company at an offering price of C$0.82 per share. This offering will provide Orezone with significant funding to further develop its Bomboré Gold Mine in Burkina Faso.
In addition to the base offering, the Company has granted the Underwriter an Over-Allotment Option to purchase up to 6,402,450 additional common shares at the same price, for additional gross proceeds of up to C$5,250,009. The Over-Allotment Option can be exercised in whole or in part at any time within 30 days following the Closing Date, which is expected to occur on or about March 13, 2025, subject to the fulfillment of regulatory conditions.
Use of Proceeds
The net proceeds from this offering (and any proceeds received from the Over-Allotment Option) will primarily be used to accelerate the Stage II hard rock expansion at the Bomboré Gold Mine. Orezone also plans to allocate funds for additional exploration activities at the mine, which has shown significant promise in its ongoing development. The company will also utilize some of the funds for general corporate purposes and working capital requirements.
Details of the Offering
The offering will be made by way of a short-form prospectus to be filed in the provinces of Canada (excluding Quebec), and shares may also be sold in certain offshore jurisdictions, as long as it does not trigger any filing obligations or continuous disclosure requirements. The shares will also be offered in the United States through a private placement, relying on exemptions from the registration requirements under the U.S. Securities Act of 1933.
The Common Shares being offered have not been, and will not be, registered under the U.S. Securities Act. Therefore, they cannot be offered or sold in the United States unless they are registered or qualify for an exemption. This offering does not constitute an offer for the sale of securities in the United States or any other jurisdiction where such an offer would be illegal.
Regulatory Approval and Closing
Closing of the offering is contingent upon the approval of regulatory authorities, including the Toronto Stock Exchange, and any applicable securities regulators. Once these conditions are met, the offering is expected to close on or about March 13, 2025, providing Orezone with a strong financial base for its planned expansion and exploration activities at Bomboré.
