29 Oct 2007capital raising announcement● NeutralMajor
Orezone filed a preliminary prospectus for a share offering expecting gross proceeds of US$200 million, led by BMO Capital Markets, CIBC World Markets and J.P. Morgan; size and price are not yet set. It is conditional on Orezone buying Gold Fields' 60% interest in the Essakane project (announced October 11, 2007), which would take Orezone's stake in the project Gold Fields had been earning into beyond its earlier operator role; most proceeds are to fund that purchase and development. Existing shareholders face dilution if it proceeds (inference).