One Out Of Two Ain’t Bad

Orezone Sees 2015 Burkina Faso Gold Production

By Ted Niles

The 2008 acquisition of Orezone Resources Inc by IAMGOLD Corporation TSX:IMG was, in President/CEO Ron Little’s view, less a takeover than it was “a take-under.” The junior mining company was within reach of production at its Essakane gold project in Burkina Faso when the market crash dealt it a decisive blow. “We were about a third of the way into Essakane in terms of construction when it hit,” Little laments. “We got it fully permitted on our own; we had a debt facility approved; it was the biggest capital investment ever in Burkina Faso.”

But all was not lost. While Orezone needed cash, IAMGOLD needed reserves. The urgency of the situation was such that the transaction wasn’t entirely to Orezone’s disadvantage. Little explains, “We said, ‘Look, we’ll keep everything else, and you take Essakane. We’ll carry on with $10 million in cash and these other assets.’ IAMGOLD was happy to short-circuit their due diligence. They never did get a look at the Bomboré gold project because we never showed it to them. They were just happy to get Essakane for a steal.”

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