Orezone Gold has secured binding commitments of more than $105m to fully fund the construction of the phase 2 hard rock expansion at its flagship Bomboré gold mine in Burkina Faso.

The financing package includes a $58m senior secured term loan with the company’s current senior lender Coris Bank International for a period of three years.

It also involves a $47m non-brokered private placement of about 92.7 million common shares of Orezone Gold at C$0.7 ($0.51) per share with Nioko Resources.

The company’s board of directors has approved a positive construction decision for the West African brownfield expansion with the new capital.

Orezone Gold president and CEO Patrick Downey said: “We are extremely pleased to announce that the Phase II hard rock expansion for Bomboré is now fully financed.

“We welcome Nioko Resources, a local Burkinabe and West African investment group, as an aligned and committed stakeholder, further strengthening our local base and providing another platform for regional growth.

“Orezone remains well-positioned to deliver this next stage of project growth, which will see annual gold production increase to over 170,000 ounces in 2026, an approximate 50% increase from current levels.”

The mining firm said that the Bomboré gold mine phase 2 expansion is on schedule with early works completed and engineering and procurement at well-advanced stage. Other major works are expected to commence shortly.

Phase 2 hard rock expansion at the Bomboré project is slated to produce the first gold in late 2025.

Located 85km east of Ouagadougou, the Bomboré project is an open pit gold mine. The gold project is 90% owned by Orezone Gold with the Burkina Faso government retaining a 10% carried interest.

Subject to final approval of the Toronto Stock Exchange (TSX), the equity financing with Nioko Resources is anticipated to be completed this month.