Ron Little

Ottawa's Orezone Resources Inc. (TSX:OZN) on Wednesday announced the closing of a US$40-million debt facility with The Standard Bank of South Africa Ltd., a deal which the company said will allow for continued construction of the Essakane gold project in Burkina Faso, West Africa.

The facility will also allow the company to close a US$300-million senior debt facility and a US$30-million cost overrun facility with Unicredit HVB and the South African financial institution. The five-month facility with Standard Bank has a coupon of LIBOR (London interbank offered rate) plus four per cent, Orezone said.

"We have drawn the full facility and will put these funds towards the Essakane capital expenditures, which remains on budget," said Ron Little, Orezone CEO, in a statement. "This bridge facility will allow us time to close the senior facility and to investigate all options for our final equity portion of the project financing."

Orezone also announced Wednesday it's consolidated a 100-per-cent interest in its Bombore project, also located in Burkina Faso, by purchasing the remaining 50-per-cent interest and net smelter royalty from Channel Resources Ltd. and Solomon Resources Ltd. for a total of one million common Orezone shares.

The Bombore project is a large tonnage, low-grade, oxide resource with heap-leach potential, the company said. The 250-square-kilometre property sits 80 kilometres east of Ouagadougou, the capital of Burkina Faso.

The government of Burkina Faso retains a 10-per-cent non-participating interest and a three-per-cent net smelter royalty in all operating gold projects.