Last Updated January 11, 2008
Gold company Orezone Resources has selected HypoVereinsbank (HVB), part of the Unicredit Group, and Standard Bank as mandated lead arrangers to arrange and underwrite a US$250mn of project debt to finance the Essakane gold project in Burkina Faso. Auramet Trading is acting as an advisor to Orezone on the transaction.
Orezone is an emerging gold producer whose main asset is Essakane, the largest deposit in Burkina Faso in West Africa. The deposit remains open and untested below 300 metres from the surface and is surrounded by several satellite deposits.
Orezone reports to have a pipeline of developing projects, said to be located in politically stable areas of West Africa, one of the world's fastest developing regions for gold production.
In October 2007, Orezone Resources entered into an agreement with its partner Gold Fields to acquire their 60% interest in the Essakane project for a total of US$200mn in cash and shares. Orezone became the operator of the mine with 100% interest in the project.
This acquisition has improved the profile of the company from explorer to intermediate producer with expected production of 292,000oz of gold annually by 2010.
The acquisition financing consisted of US$150mn in cash and it also issued 41,666,667 common shares to Gold Fields.
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