/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Jan. 8, 2020 /CNW/ - Orezone Gold Corporation
(TSXV:ORE) ("Orezone" or the "Company") is
pleased to announce that it has entered into an agreement with
Canaccord Genuity Corp. and PI Financial Corp. to act as co-lead
underwriters, on behalf of a syndicate of underwriters
(collectively the "Underwriters"), pursuant to which the
Underwriters will purchase, on a bought deal basis, an aggregate of
37,100,000 units (the "Units") of the Company at a price
of C$0.54 per Unit (the "Offering Price") for
aggregate gross proceeds of C$20,034,000 (the
"Underwritten Offering").
Each Unit will be comprised of one common share of the Company
and one half of one common share purchase warrant of the Company
(each full warrant, a "Warrant"). Each Warrant will
entitle the holder to acquire one common share of the Company at
a price of C$0.80 per common share at any time on or
before that date which is 36 months after the Closing Date (as
defined herein).
In addition, the Company will grant the Underwriters an option
to acquire up to an additional 5,565,000 Units (the "Underwriter
Option Units" and together with Units, the "Offered
Securities") at a price of C$0.54
per Underwriter Option Unit for additional gross proceeds of up to
C$3,005,100 (the "Underwriter
Option" and together with the Underwritten Offering, the
"Offering"), exercisable in whole or in part, at any time on
or prior to the date that is 30 days following the Closing
Date.
The Company intends to use the net proceeds from the Offering to
advance Bomboré towards production, as well as for working capital
and general corporate purposes.
The Offered Securities will be offered by way of a short-form
prospectus in each of the provinces of Canada, except Québec, as agreed to by the
Company and the Underwriters.
Closing of the Offering is expected to occur on or
about January 29, 2020 (the "Closing Date") and is
subject to certain conditions including, but not limited to,
receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange and applicable securities
regulatory authorities.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein in
the United States. The securities
described herein have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United
States or to the account or benefit of a U.S. person absent
an exemption from the registration requirements of such
Act.
Orezone Gold Corporation
Orezone Gold Corporation (TSXV:ORE) is a Canadian exploration
and development company which owns a 90% interest in Bomboré, one
of the largest undeveloped gold deposits in Burkina Faso. Bomboré hosts a large oxide
resource underlain by a larger, open sulphide resource, and will be
developed in two stages.
Patrick Downey,
President and Chief Executive Officer
Vanessa Pickering
Manager, Investor Relations
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
info@orezone.com / www.orezone.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
FORWARD-LOOKING INFORMATION AND FORWARD-LOOKING
STATEMENTS:
This news release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
laws. Forward-looking information and forward-looking statements
(together, "forward-looking statements") are frequently
characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain
events or conditions "may", "will", "could", or "should" occur.
Forward-looking statements in this news release
include, but are not limited to, statements with respect to the
Offering, including the anticipated closing date and use of
proceeds of the Offering.
All such forward-looking statements are based on certain
assumptions and analyses made by management in light of their
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors
management and the qualified persons believe are appropriate in the
circumstances.
In addition, all forward-looking information and statements
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements
including, but not limited to, the failure of parties to contracts
to honour contractual commitments, unexpected changes in laws,
rules or regulations, or their enforcement by applicable
authorities; the failure of parties to contracts to perform as
agreed; social or labour unrest; changes in commodity prices;
unexpected failure or inadequacy of infrastructure, the possibility
of project cost overruns or unanticipated costs and expenses,
accidents and equipment breakdowns, political risk, unanticipated
changes in key management personnel and general economic, market or
business conditions, the failure of exploration programs, including
drilling programs, to deliver anticipated results and the failure
of ongoing and uncertainties relating to the availability and costs
of financing needed in the future, and other factors described in
the Company's most recent annual information form and management
discussion and analysis filed on SEDAR on www.sedar.com.
Readers are cautioned not to place undue reliance on
forward-looking information or statements.
Although the forward-looking statements contained in this
news release are based upon what management of the Company believes
are reasonable assumptions, the Company cannot assure investors
that actual results will be consistent with these forward-looking
statements. These forward-looking statements are made as of the
date of this news release and are expressly qualified in their
entirety by this cautionary statement. Subject to applicable
securities laws, the Company does not assume any obligation to
update or revise the forward-looking statements contained herein to
reflect events or circumstances occurring after the date of this
news release.
SOURCE Orezone Gold Corporation
