By Devika Patel
Knoxville, Tenn., Nov. 16 - Orezone Resources Inc. said it will conduct two private placements of stock to raise $200.04 million.
The company will sell a total of 166.7 million common shares at $1.20 apiece.
Orezone has entered into an agreement with a syndicate of underwriters to sell 154.2 million common shares for $185.04 million. In addition, Minquest Fund I, LP has agreed to buy 12.5 million common shares at the same price for $15 million.
The syndicate for the first deal will be led by BMO Capital Markets, CIBC World Markets Inc., and J.P. Morgan Securities Inc. and includes Canaccord Capital Corp. and Raymond James Ltd. The underwriters have a greenshoe for 23.13 million shares, or $27,756,000.
Closing is expected Nov. 26 and is conditional on the company's acquisition of the Essakane project in Africa. The majority of the proceeds will be used to finance the cash component of the Essakane acquisition ($150 million), with the remainder used to fund the project's development and for general corporate purposes.
Orezone Resources, based in Ottawa, Ont., is a precious metals resource company.
| Issuer: | Orezone Resources Inc.
|
| Issue: | Common shares
|
| Amount: | $200.04 million
|
| Shares: | 166.7 million
|
| Price: | $1.20
|
| Warrants: | No
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 26
|
| Stock symbol: | TSX Venture: DEJ
|
| Stock price: | C$1.77 at close Nov. 8
|
|
|
| First deal
|
| Amount: | $185.04 million
|
| Shares: | 154.2 million
|
| Greenshoe: | 23.13 million shares, or $27,756,000
|
| Underwriters: | BMO Capital Markets, CIBC World Markets Inc., J.P. Morgan Securities Inc. (leads); Canaccord Capital Corp., Raymond James Ltd.
|
|
|
| Second deal
|
| Amount: | $15 million
|
| Shares: | 12.5 million
|
| Investor: | Minquest Fund I, LP
|
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