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Orezone sells Sega gold mining project to Cluff Gold for $29.6 million

By The Canadian Press  | February 03, 2012

OTTAWA - Junior gold miner Orezone Gold Corp. (TSX:ORE) has agreed to sell its Sega project in Burkina Faso to U.K.-based Cluff Gold (LSE:CLF) for about US$29.6 million in cash and shares.

The deal will give Orezone a 7.7 per cent stake in Cluff, which gets the Tiba and Namassa exploration permits contained in the Sega project.

"The sale provides Orezone with a significant non-dilutive financing to advance the development of its Bombore gold project while still allowing the opportunity to participate in the upside at Sega through an equity interest in Cluff," Orezone president and CEO Ron Little said in a statement.

Cluff will pay US$15 million in cash and 11 million shares.

The deal requires approval from the Government of Burkina Faso and is expected to close by the end of the first quarter.

Orezone operates the Bombore mine in Burkina Faso, one of the largest gold deposits in the country.

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