pj McMulligan
16 years ago
OTTAWA, ONTARIO--(Marketwire - Feb. 12, 2009) - Orezone Resources Inc. (TSX:OZN)(NYSE ALTERNEXT:OZN) is pleased to announce preliminary proxy results with respect to the special meeting to be held on February 18, 2009 in Toronto to consider the previously announced plan of arrangement with IAMGOLD Corporation (TSX:IMG)(NYSE:IAG). As at February 11, 2009, proxies representing 41.63% of the outstanding Orezone shares had been deposited, of which 99.90% had been voted in favor of the arrangement. Under the arrangement, Orezone shareholders will receive 0.08 common shares of IAMGOLD plus 0.125 common shares of a new exploration company, Orezone Gold Corporation, for each Orezone share held. Pending receipt of shareholder approval and the approval of the Ontario Superior Court of Justice, the arrangement is expected to close on February 25, 2009.
IAMGOLD has also agreed to invest up to C$7,000,000 in the Orezone subsidiary that holds the rights to the Essakane Project in exchange for a maximum 2% interest in the subsidiary. The funds will be invested to continue the timely development of the Essakane Project pending completion of the arrangement. IAMGOLD currently holds 16.6% of the outstanding shares of Orezone and will not obtain any further voting rights at the special meeting as a result of the placement. If the arrangement with IAMGOLD is not completed, IAMGOLD will have the right to put the purchased shares back to Orezone and Orezone shall have the option of paying the invested amount in cash or in Orezone shares.
Orezone is an explorer and emerging gold producer that owns Essakane and Bombore, the first and third largest gold deposits in Burkina Faso, West Africa. Orezone also has a pipeline of developing projects, all located in politically stable areas of West Africa, one of the world's fastest growing gold-producing regions. Orezone's mission is to create wealth by discovering and developing the earth's resources in an efficient and responsible manner.
FinancialAdvisor
16 years ago
IAMGold to buy Orezone outstanding shares
Thursday December 11, 10:20 am ET
IAMGold to acquire Orezone outstanding shares worth $139M, Essakane project
NEW YORK (AP) -- Canadian gold-mining company IAMGold Corp. said Thursday it will buy Orezone Resources Inc. for about $139 million and take over Orezone's Essakane project in West Africa.
Shareholders of Canada-based gold miner Orezone will receive 0.08 common shares of IAMGold.
IAMGold will also acquire and finance development of the Essakane project, one of West Africa's largest undeveloped gold reserves. In September, construction began at a mine estimated to produce an average of over 300,000 ounces of gold per year, over a minimum nine-year mine life at an average cash operating cost of $358 per ounce. The company said it expects full production will be in full swing in late 2010.
"This transaction represents excellent value and takes us a large step toward our stated goal of 1.8 million ounces annual gold production by 2012, while lowering our average cash cost by $40 to $50 per ounce," said Joseph Conway, IAMGold's chief executive.
As part of the transaction, several of Orezone's exploration properties not related to Essakane, will be spun out into a new exploration company, "New Orezone," in which IAMGold will become a 16.6 percent shareholder.
The company also plans to set up a corporate African operations office based in Dakar, Senegal.
Shares of IAMGold added 9 cents to $4.82 in morning trading. Shares of Orezone more than doubled to 37 cents. They closed at 12 cents on Tuesday.
http://biz.yahoo.com/ap/081211/iamgold_orezone_share_sale.html?.v=1
greggor62
16 years ago
IAMGOLD and Orezone Announce Business Combination
Thursday December 11, 7:42 am ET
Essakane Mine to Become a Flagship IAMGOLD asset and Orezone to be Re-established as an Exploration Company
TORONTO, ONTARIO and OTTAWA, ONTARIO--(MARKET WIRE)--Dec 11, 2008 -- IAMGOLD Corporation (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) and Orezone Resources Inc. (Toronto:OZN.TO - News)(AMEX:OZN - News) ("Orezone") jointly announced today that they have entered into a definitive arrangement agreement whereby IAMGOLD would acquire, via a plan of arrangement, all of the outstanding common shares of Orezone in a supported, all-share transaction. Total consideration is valued at approximately US$139 million.
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"This business combination with Orezone is consistent with our strategy and takes IAMGOLD to the next level. This transaction represents excellent value and takes us a large step towards our stated goal of 1.8 million ounces annual gold production by 2012, while lowering our average cash cost by $40 to $50 per ounce. IAMGOLD is uniquely positioned in the current markets with a solid cash position, low debt, record cash flow and the financial capacity to finance the construction of Essakane, a second flagship gold mine for IAMGOLD," said Joseph Conway, President and CEO of IAMGOLD.
Highlights of the Combination
- IAMGOLD to acquire and finance development of the Essakane project, one of West Africa's largest undeveloped gold reserves
- All-stock transaction with value of approximately US$139 million
- Orezone exploration assets, including Bombore, to be distributed pro rata to Orezone shareholders to create "New Orezone"
- Each Orezone shareholder to receive 0.08 of an IAMGOLD share and a pro rata share of New Orezone for each Orezone share held
- Orezone Board of Directors unanimously recommends that Orezone shareholders vote in favour of the transaction
- Shareholder voting agreements in place representing approximately 5.1% of the outstanding shares of Orezone
- IAMGOLD to provide Orezone an immediate Cdn$20 million equity financing at Cdn$0.28/share, subject to regulatory approvals
- IAMGOLD to create a Corporate African operations office based in Dakar, Senegal
- Transaction is very accretive to IAMGOLD shareholders on a NAV and Reserves per share basis, as well as an Earnings and Cash Flow per share basis when Essakane is in production
- IAMGOLD will become a 16.6% shareholder of New Orezone adding further value to both IAMGOLD and Orezone shareholders.
As per the terms of the agreement, Orezone shareholders will receive 0.08 common shares of IAMGOLD plus a pro rata share of a new exploration company ("New Orezone") for each Orezone share. This represents a value of approximately Cdn$0.49 per Orezone share based on the closing price of IAMGOLD on the TSX on December 10, 2008, representing a 91% premium using 30-day volume weighted average share prices.
Orezone's Board of Directors has unanimously recommended that shareholders vote in favour of the IAMGOLD transaction. Each director and officer has entered into a voting agreement to vote in favour of the transaction (1.6%). Voting agreements have also been entered into with Minquest Capital (3.5%). In aggregate, holders of a total of 5.1% of Orezone common shares have agreed to vote in favour of the transaction.
Orezone's main asset is the fully permitted, 4 million ounce Essakane gold project, located in Burkina Faso, West Africa. Construction commenced in September of this year for a mine that will contribute average gold production of over 300,000 ounces per year over a minimum nine-year mine life at an average cash operating cost of US$358 per ounce, using a $600 per ounce gold price and $85/bbl oil price. Full production is anticipated in late 2010, requiring a remaining capital expenditure of approximately US$350 million.
"We believe this transaction provides an excellent opportunity for the shareholders of Orezone. It provides a substantial premium to market and continued exposure to Essakane with IAMGOLD's financial resources to develop it. Orezone shareholders will benefit through ownership in a globally diversified mid-tier gold producer with 8 mines on 3 continents," said Conway.
Ron Little, CEO of Orezone comments, "IAMGOLD brings the capital required, to bring Essakane into production during these difficult markets. The transaction provides our shareholders an opportunity to capitalize on significant value creation in IAMGOLD. Orezone shareholders will also participate in the creation of New Orezone that will retain Orezone's management and exploration team. New Orezone will be well financed through this transaction and host three advanced gold projects including Bombore, the second largest gold resource in Burkina Faso with 1.7 million ounces of measured and indicated resources. Importantly, this transaction results in a very positive outcome for those dedicated to the development of the Essakane project including the people of Burkina Faso, especially the Essakane community, the contractors and the development and construction team that Orezone has established and who will have the opportunity to continue with the project."
Terms of the Transaction
- The fully diluted value of the offer is approximately US$139 million, not including the value of the "New Orezone" shares offered as part of the transaction.
- There are currently 295.6 million IAMGOLD common shares outstanding and 357.8 million Orezone common shares outstanding. Upon completion of the transaction, Orezone shareholders will own approximately 9% or 28.6 million shares of the resulting 324.3 million IAMGOLD shares outstanding.
- As part of the transaction, several of Orezone's exploration properties, not related to the Essakane development project, will be spun out into a new exploration company ("New Orezone"), together with Cdn$10 million in cash. IAMGOLD will, on completion of the transaction, hold a 16.6% interest in New Orezone following the distribution of New Orezone shares to Orezone shareholders.
- IAMGOLD is in advanced discussions with project lenders to provide US$160 to $220 million for the Essakane project financing.
- Completion of the transaction is subject to customary conditions, including court approvals, a favourable vote of at least two-thirds of the holders of Orezone common shares voted at a special meeting of shareholders, and the receipt of all necessary regulatory approvals. The definitive agreement includes a non-solicit clause and provides for the payment of a Cdn$4 million break fee.
- Orezone will call a special meeting of shareholders to be held in February 2009 to approve the transaction. Orezone expects to mail an information circular providing full details of the IAMGOLD transaction and the spin-out of New Orezone to Orezone shareholders in early January 2009.
- The transaction will be carried out via a plan of arrangement. Assuming Orezone shareholders approve the transaction at the special meeting, and final court approvals are obtained, the transaction is expected to close by the end of February 2009.
When in production in late 2010, Essakane will contribute more than 25 per cent of IAMGOLD's gold production, bringing the company's annual production to well over one million ounces of gold per year. "With this transaction, we are able to achieve a significant production increase in the near-term, a cost reduction of $40 to $50 per ounce and a 32% increase in reserves, with modest share dilution," said Conway.
IAMGOLD also announced today that it will establish a Corporate office based in Dakar, Senegal. "IAMGOLD's long history and depth of knowledge in West Africa gives us a unique competitive advantage. We are on track for production of almost 400,000 ounces of gold from West Africa this year alone. With the acquisition of Essakane and the establishment of a West African operations office, we will solidify our position as the major player in this very favourable mining region," said Conway. The office will be managed by Brian Chandler, Senior Vice-President of African Operations, who will oversee regional operations, manage joint venture interests and build on the strong community and government relationships both IAMGOLD and Orezone have established in the region.
IAMGOLD has also agreed to purchase 71.4 million common shares of Orezone on a private placement basis, at a price of Cdn$0.28 per share for total subscription proceeds of approximately Cdn$20 million. These funds are to allow Essakane development activities to continue and for general corporate purposes. The private placement is not conditional on completion of the offer. Completion of the transaction and the private placement are subject to TSX and regulatory approval. Upon completion of the private placement, IAMGOLD will hold approximately 16.6% of the outstanding common shares of Orezone.
Orezone issued a Cdn$10 million convertible debt to Minquest Capital Inc. in July 2008 that, as a condition of the transaction, will be repaid in cash and IAMGOLD shares at agreed upon terms.
Orezone has fully drawn a US$40 million bridge facility with the Standard Bank of South Africa for construction at Essakane which will be assumed by IAMGOLD upon completion of the transaction.
The transaction has been approved by Orezone's Board of Directors, following the unanimous recommendation of a special committee comprised of independent Orezone directors. The Board of Directors of Orezone recommends that holders of Orezone shares vote in favour of the transaction. BMO Capital Markets has provided an opinion to the Orezone Board of Directors that the consideration to be received by Orezone shareholders under the transaction is fair, from a financial point of view, to the Orezone shareholders, other than IAMGOLD. The transaction has also been approved by the Board of Directors of IAMGOLD.
IAMGOLD appointed Canaccord Adams as financial advisors and its legal counsel is Fraser Milner Casgrain LLP. Stikeman Elliott LLP is acting as external legal counsel to Orezone.
About IAMGOLD
IAMGOLD is a leading mid-tier gold mining company producing almost one million ounces from 8 mines on 3 continents. IAMGOLD is focused on growth with a target to reach 1.8 million ounces gold production by 2012. IAMGOLD is uniquely positioned with a strong financial base, together with the management and operations expertise to execute our aggressive growth objectives. IAMGOLD is focused in West Africa, the Guiana Shield of South America and in Quebec where it has a pipeline of development and exploration projects, while it continues to assess accretive acquisition opportunities with a strategic fit. IAMGOLD is listed on the Toronto Stock Exchange ("IMG"), the New York Stock Exchange ("IAG") and the Botswana Stock Exchange.
About Orezone
Orezone is an explorer and emerging gold producer that owns Essakane and Bombore, the two largest gold deposits in Burkina Faso, West Africa. Orezone also has a pipeline of developing projects, all located in politically stable areas of West Africa, one of the world's fastest growing gold-producing regions. Orezone's mission is to create wealth by discovering and developing the earth's resources in an efficient and responsible manner.
Conference Call
IAMGOLD and Orezone will host a conference call and webcast to discuss this announcement on Thursday December 11th, 2008 at 10:00 a.m. To access the call, please dial:
Canada & US toll-free - 1-866-551-1530
Outside of Canada & US - 1-212-401-6700
Passcode: 1944183#
Replay (available up to 14 days after the call):
Canada & US toll-free - 1-866-551-4520
Toll free in North America - 1-212-401-6750
Passcode: 238335#
You may also access the conference call on a listen-only basis via webcast at the IAMGOLD website at www.iamgold.com or the Orezone website at www.orezone.com. The audio webcast will be archived on www.iamgold.com and on www.orezone.com.
greggor62
16 years ago
Big day here TT. Check out the news.
stock up over 100% premkt.
Latest News Headlines for OreZone Res Inc
Orezone Holders To Get Stk Worth C$0.49/Shr
40 minutes ago - T
Orezone Board Recommends Transaction
40 minutes ago - T
IAMGOLD Says Offer Is Worth $139M
41 minutes ago - T
IAMGOLD Says All-Stk Deal Is Worth $139M
41 minutes ago - T
IAMGOLD And Orezone Announce Business Combination
41 minutes ago - T
Iamgold To Buy Orezone For $139M >IMG.T
41 minutes ago - T
Earlier Headlines - view recent headlines0.21/70
Bid/Size
0.30/50
Ask/Size
0.00
Price Open
0.115
Previous Close
0.00
Day High
0.00
Day Low
2.06
Beta (5yr)
1.89/2/29/08
52wk High/Date
0.10/12/9/08
52wk Low/Date
40.9 Million
Market Capitalization
356.0 Million
Shares Outstanding
264.10
Volatility Avg (20 day)
847.5 Thousand
Avg Vol (10 day)
NM
P/E Ratio
0.00
EPS (TTM)
Orezone Res Inc does not pay dividends.
PDF Reports for OreZone Res Inc
Standard & Poor's Stock Report
Reuters Research Report
Company Background
Orezone Resources Inc. (Orezone) is a Canadian company engaged in the investigation, acquisition, exploration and development of mineral properties. The Company’s principal exploration activities are focused on the country of Burkina Faso, in West Africa. It holds the rights to explore five project areas in Burkina Faso, which are made up of 16 exploration permits covering a total of 2,762 kilometer square and five permits covering 854 kilometer square, in which Orezone has an option to earn an interest. The Company was also granted two uranium exploration permits in Niger during the year ended December 31, 2007. The Company has a gold permit of 999 kilometer square in Niger, and an option agreement enabling it to earn into another permit that covers 1,045 kilometer square. In July 2007, Orezone abandoned the Namaga option with Greencastle Resources Ltd (Greencastle) in Niger, in June 2007, the Markoye permit in Burkina Faso, and in September 2007 all three permits and option in Mali.
tt
16 years ago
Question you need to ask yourself, Does the institutional investors still thinks OZN share is worth over $1.20. Except the credit crunch (no industry is immuned from it now) I personally think OZN is in a better situation than they were a year ago ( sure all gold future is down now).
Just my 2 cents-
Shares Outstanding5: 357.84M
Float: 308.07M
% Held by Insiders1: 8.88%
% Held by Institutions1: 68.30%
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November 16, 2007:
Orezone Resources Inc. Announces US$200,000,000 Financing
Orezone Resources Inc. (OZN:TSX, AMEX) (“Orezone”) announced today that it has agreed to issue a total of 166,700,000 common shares at a price of US$1.20 per share for aggregate gross proceeds of US$200,040,000. Orezone has entered into an underwriting agreement to issue 154,200,000 common shares in the United States and Canada by way of the multijurisdictional disclosure system prospectus, resulting in gross proceeds of US$185,040,000. In addition, Minquest Fund I, L.P. has agreed to subscribe, by way of a concurrent private placement and subject to regulatory approval, for 12,500,000 common shares of Orezone at the same price per share as that of the public offering, resulting in gross proceeds of US$15,000,000 to Orezone.
The underwriting syndicate is led by BMO Capital Markets, CIBC World Markets Inc., and J.P. Morgan Securities Inc. and includes Canaccord Capital Corporation and Raymond James Ltd. Orezone has granted the underwriters an option to purchase up to an additional 23,130,000 common shares at the offering price to cover over-allotments and for market stabilization purposes for a period ending 30 days from the closing of the Offering. If the over-allotment option is exercised in full, gross proceeds of the prospectus offering will be US$212,796,000.
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October 11, 2007:
Orezone to Acquire 100% Interest in the Essakane Project
Orezone Resources Inc. (OZN:TSX, AMEX) is pleased to announce that it has entered into an agreement with its partner Gold Fields Limited (“Gold Fields”, JSE, NYSE, DFIX: GFI) to acquire their 60% interest in the Essakane Project (“Essakane”) in Burkina Faso, West Africa in consideration for US$200 million in cash and shares. As a result, Orezone will become the operator with a 100% interest in the project.
Based on a recently completed Definitive Feasibility Study and subsequent resource update (September 2007) the 60% interest in the Essakane Project represents an addition to Orezone of 1.6 million ozs of gold in reserves, 2.4 million ozs in measured and indicated resources and 761,000 ozs in Inferred Resources. As part of the terms of the agreement, Gold Fields will receive US$150 million in cash and US$50 million in common shares of Orezone that are subject to a six month Lock-Up agreement.
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Briboy
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