Orezone buys out partner’s stake in Burkina Faso gold mine
By KRYSTLE CHOW
Published in the Ottawa Business Journal newspaper and website.
Oct. 11, 2007 (Oct.15 in the paper edition)
Click here to view this article on OttawaBusinessJournal.com.
(Photo supplied)
Ottawa-based mining company Orezone Resources Inc. has bought out its partner Gold Fields Ltd.’s share in its flagship West African gold mine for $200 million in cash and shares.
The deal means that Orezone has now moved from being a company focused mainly on exploration to an intermediate producer with expected production of 292,000 ounces of gold annually by 2010, at cash operating costs of $356 US per ounce.
“This transaction is very accretive, simplifies our structure, sharpens our focus on the region and enhances our production and growth plans,” said Orezone CEO Ron Little in a statement.
Orezone’s latest feasibility study showed that Gold Fields’s share in the Essakane project adds 1.6 million ounces of gold to Orezone’s reserves, plus 2.4 million ounces in measured and indicated resources and 761,000 ounces in inferred resources.
Through the Burkina Faso project, Orezone now owns a 100-per-cent interest in 2.65 million ounces of contained reserves, 4.4 million ounces of measured and indicated resources and (more…)
