IAMGOLD Completes Acquisition of Orezone
February 25 2009 - 9:03AM
Marketwired
IAMGOLD Corporation (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD)
("IAMGOLD") and Orezone Resources Inc. (TSX: OZN)(NYSE Alternext
US: OZN) ("Orezone") jointly announced today the completion of the
acquisition of Orezone by IAMGOLD.
As a result, IAMGOLD acquired all outstanding shares of Orezone
pursuant to a plan of arrangement under the Canada Business
Corporations Act. The transaction was previously overwhelmingly
approved by 99.94% of the Orezone shareholders who voted in respect
of the arrangement, which was subsequently approved by the Ontario
Superior Court of Justice.
Effective today, each common share of Orezone has been exchanged
for 0.08 of a common share of IAMGOLD plus 0.125 of a common share
of Orezone Gold Corporation (TSX: ORG) which will start trading
today. Registered shareholders should follow the instructions in
Orezone's management information circular dated January 19, 2009 in
order to obtain certificates representing these shares. The common
shares of Orezone Resources (OZN) were delisted from the Toronto
Stock Exchange and removed from the NYSE Amex at the open of
business on February 25, 2009.
Joseph Conway, President and CEO of IAMGOLD says, "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."
Ron Little, CEO of Orezone says, "IAMGOLD brings the capital
required to bring Essakane into production in these difficult
markets. The transaction provides Orezone shareholders an
opportunity to capitalize on significant value creation in IAMGOLD
and to participate in a well-financed new exploration company that
retains the experienced Orezone management and exploration teams.
Its assets include three advanced gold projects, including Bombore,
one of the largest gold resources in Burkina Faso. The company has
Measured and Indicated resources totaling 1.7 million ounces with
Inferred resources of 2 million ounces. This transaction also
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 and the
construction team that Orezone has established."
About IAMGOLD
IAMGOLD is a leading mid-tier gold mining company producing
almost one million ounces from 7 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 Gold Corporation
Orezone Gold Corporation (TSX: ORG) is a gold exploration and
development company that owns Bombore, one of the largest gold
deposits in Burkina Faso, West Africa. Orezone Gold 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 Gold's mission is to create wealth
by discovering and developing the earth's resources in an efficient
and responsible manner.
The mineral resource estimate and technical information relating
to the Essakane project accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"). The
"Qualified Persons" for the purposes of National Instrument 43-101
who reviewed the information in respect of the Essakane project for
IAMGOLD Corporation are Rejean Sirois, Eng., Manager, Mining
Geology and Francis Clouston, Eng., Manager, Project Evaluation.
The technical information has been included herein with the consent
and prior review of the above noted Qualified Persons. The
Qualified Persons have verified the data disclosed, and data
underlying the information or opinions contained herein.
The mineral resource estimate related to the Bombore property
was prepared by Glen Cole, Dorota El-Rassi and Jean-Francois
Couture of SRK Consulting (Canada) Inc. (each a Qualified Person
under NI 43-101) and documented in the Technical Report on the
Bombore Gold Project in Burkina Faso, West Africa, dated November
17, 2008. This report is available on SEDAR at www.sedar.com.
FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This
news release contains certain "forward-looking statements" within
the meaning of Section 21E of the United States Securities Exchange
Act of 1934, as amended, and "forward-looking information" 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 and forward-looking
information in this new release include statements with respect to
the completion of the plan of arrangement, receipt of court and
shareholder approvals, development of the Essakane project and the
listing of Orezone Gold Corporation.
Forward-looking statements are based on certain assumptions,
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The assumptions
include that contracted parties provide goods and/or services on
the agreed timeframes, that equipment necessary for the drilling
program is available as scheduled, that no labour shortages or
delays are incurred, that no material adverse change occurs to
either Orezone or IAMGOLD, that shareholder, court and regulatory
approvals are received in a timely manner. Factors that could cause
the forward-looking statements and forward-looking information to
differ materially in actuality include the failure of contracted
parties to perform as contracted and the failure of equipment.
Orezone and IAMGOLD undertake 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.
The securities being offered have not, nor will they be
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons absent U.S.
registration or an applicable exemption from the U.S. registration
requirements. This release does not constitute an offer for sale of
securities in the United States.
Contacts: IAMGOLD Corporation Joseph F. Conway President &
CEO (416) 360-4712 or Toll Free: 1-888-IMG-9999 Email:
jconway@iamgold.com IAMGOLD Corporation Elaine Ellingham SVP,
Investor Relations & Communications (416) 360-4743 or Toll
Free: 1-888-IMG-9999 Email: eellingham@iamgold.com Orezone Gold
Corporation Ron Little Chief Executive Officer (613) 241-3699 or
Toll Free: 1-888-673-0663 Email: rlittle@orezone.com Orezone Gold
Corporation Janet Eastman Manager, Investor Relations (613)
241-3699 or Toll Free: 1-888-673-0663 Email:
jeastman@orezone.com
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