Orezone Gold Corp. said March 26 that it intends to raise C$44.9 million through the placement of 56,150,000 shares at 80 Canadian cents apiece to fund the development of the Bomboré gold project in Burkina Faso and for general corporate purposes.
New strategic investors Resource Capital Fund VII LP and Coris Capital SA will subscribe for 42,056,250 and 3,750,000 shares, representing 19.99% and 1.78% of the company's issued share capital, respectively.
Two of Orezone's largest existing shareholders will also participate in the offering, which is scheduled to close in early April.
As part of its subscription, Resource Capital Fund VII also entered into an investor rights deal, which gives it participation rights to maintain its pro rata shareholding as long as it remains above 10% as well as the right to nominate two directors to Orezone's board.
"With these funds on hand and no debt, the company is well positioned to make a construction decision and to commence the first phase construction of the Bomboré project later this year," Orezone President and CEO Patrick Downey said.