Orezone Gold Corporation

Orezone Gold Corporation

June 23, 2010 09:27 ET

Orezone Arranges C$5M Private Placement for Brighton Energy

Orezone consolidates its interest in Brighton Energy

OTTAWA, ONTARIO--(Marketwire - June 23, 2010) - Orezone Gold Corporation (TSX:ORE) is pleased to announce that it has arranged a non-brokered private placement financing of C$5M for Brighton Energy ("Brighton") through Brighton's subsidiary Niger Resources Inc. ("Niger"). Under the terms of the placement, 5 million ordinary common shares of Niger will be issued at C$1/share. No commissions or finder's fees have been paid in connection with the placement. All subscription agreements have been completed and the clearance of all funds and share certificate issuance is expected before June 30, 2010. The proceeds of the private placement will be used to commence exploration work on the company's uranium permits in Niger, West Africa, including the establishment of field offices, airborne geophysical surveys, target generation and subsequent drill testing of priority targets. 

Orezone is also pleased to announce that its wholly owned uranium subsidiary has entered into a binding agreement to purchase all of the outstanding common shares of Niger currently held by North Atlantic Resources Inc. (NAC-V) for C$1M. The transaction is subject to certain closing conditions and is expected to be completed on or before September 9, 2010. Upon completion of the transaction and the financing, Orezone will indirectly own 66.6% of the shares of Niger. 

"We are very pleased to secure this financing and consolidate our ownership to the benefit of all Orezone and Brighton stakeholders", said Ron Little, President and CEO for Orezone. "Brighton is well funded and well positioned in this prolific region". Brighton plans to conclude an IPO by Q2 2011 after spending a minimum of C$3M in exploration expenditures. 

Brighton, through its Niger subsidiary, is a uranium focused explorer with title to 4,000 km² of well located and prospective ground. The area contains key geological structures and favorable rocks that are known to host or control the mineralization at producing uranium mines in the region (Location Map: http://www.orezone.com/?page_id=42). The basin currently ranks as the sixth largest uranium producing area in the world and is expected to become the second largest by 2013 with production from Areva and China Nuclear. Even with the increased production profile the area remains largely under-explored. 

Orezone is a gold exploration and development company with more than 15 years experience in West Africa, one of the world's fastest growing gold producing regions. Orezone delineated, permitted, and developed Burkina Faso's largest gold deposit (Essakane) before it was bought by IAMGOLD in a transaction worth approximately C$350M. Orezone continues to focus on developing the rest of its pipeline of advanced gold projects including Bomboré, one of the largest undeveloped gold deposits in Burkina Faso. Orezone's mission is to create wealth by discovering and developing gold resources in an efficient and responsible manner for the benefit of its shareholders and other stakeholders.

FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.

Forward-looking statements are based on certain assumptions, opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking statements. The assumptions include that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for the drilling program is available as scheduled, that no labour shortages or delays are incurred, that no material adverse change occurs to Orezone, that court and regulatory approvals are received in a timely manner. Factors that could cause the forward-looking statements and forward-looking information to differ materially in actuality include the failure of contracted parties to perform as contracted and the failure of equipment. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2007, and other continuous disclosure documents filed by Orezone since January 1, 2008 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

Contact Information

  • Orezone Gold Corporation
    Ron Little
    613-241-3699 or Toll Free: 888-673-0663
    Orezone Gold Corporation
    Sean Homuth
    613-241-3699 or Toll Free: 888-673-0663