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Orezone Completes the Sale of Sega to Cluff Gold for $26.5M

May 23, 2012

 

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Orezone Gold Corporation (ORE:TSX) (“Orezone” or the “Company”) is pleased to announce that it has completed the sale of its Sega Gold Project (“Sega”) in Burkina Faso to Cluff Gold plc (Cluff) for total consideration of approximately US$26.5M. The consideration is comprised of US$15M in cash and 11M new common shares of Cluff, representing 6.5% of Cluff’s issued and outstanding common shares.  The Cluff shares are subject to a four-month hold period as well as an orderly market provision.

 

Sega is strategically located adjacent to Cluff’s Kalsaka mine, approximately 150 km northwest of the capital of Burkina Faso. The transaction will allow Cluff to increase the mine life of Kalsaka and potentially increase the production profile for the combined area. In addition, gold production from Sega will occur much sooner than previously scheduled by Orezone and this will benefit all stakeholders, especially the people of Burkina Faso.

 

"The proceeds from this sale combined with the US$16M currently in the treasury, gives Orezone the financial strength to complete all of its planned 2012 exploration programs and feasibility studies without the need for any additional capital", commented Ron Little, CEO of Orezone.

 

About Orezone Gold Corporation

Orezone is a Canadian company with a gold discovery track record of +10 M oz and recent mine development experience in Burkina Faso, West Africa. Bomboré, the Company’s 100% owned flagship project, is one of the largest gold deposits in the country and is situated 85 km east of the capital city, adjacent to an international highway. Resources are constrained within optimized open pit shells that span 11 km, and include 1.6 Moz indicated (60.9 Mt @ 0.81 g/t) and 1.9 Moz inferred resources (60.6 Mt @ 0.96 g/t) with an average drill depth of only 60 meters.  The Company has recently completed a 215,000 m drill program to significantly expand resources and support the completion of a BFS in 2012. Orezone’s goal is to develop Bomboré into a world-class deposit by the end of 2012 and become a mid-tier producer by 2015.

For further information please contact Orezone at (613) 241‑3699 or Toll Free: (888) 673‑0663

Ron Little, CEO, rlittle@orezone.com               Sean Homuth, CFO, shomuth@orezone.com

FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain “forward-looking statements” 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 in this release include statements regarding, among others, completion of a bankable feasibility study in 2012; and commencement of production at the Bomboré Project by 2015.

FORWARD-LOOKING STATEMENTS are based on certain assumptions, the opinions and estimates of management at the date the statements are made, and 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. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); uncertainties relating to the availability and costs of financing needed in the future and other factors. 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. Comparisons between any resource model or estimates with the subsequent drill results are preliminary in nature and should not be relied upon as potential qualified changes to any future resource updates or estimates.

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, 2011 and other continuous disclosure documents filed by Orezone since January 1, 2012 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.