Cluff Gold to Acquire Orezone Gold Corp’s Sega Gold Project

By Joel ScanlonFeb 7 2012

UK based Cluff Gold has announced that it has entered into a conditional sale and purchase agreement with Orezone Gold Corporation to acquire all the licenses and related property of the Sega Gold Project owned by Orezone Gold, which is located at a distance of 20km from the Kalsaka project owned by Cuff Gold in Burkina Faso.

Cluff Gold will pay $15 million cash and 11 million of its ordinary shares as consideration for the acquisition. The acquisition will be financed with the current cash resources of Cuff Gold amounting to $28.9 million.

The acquisition, which will involve limited capital expenditure will help in increasing the life of the Kalsaka mine. Orezone has carried out detailed metallurgical test work and established the presence of average heap leach recoveries for 85% transitional ore and oxide. Economic assessment will be carried out to ascertain the feasibility of the heap leach operation to process the oxide and transitional resources and maintaining continuous output at the Kalsaka plant to achieve a capacity of 1.6Mtpa. The transaction will be completed based on the closure of standard closing conditions and receiving approval from the Government of Burkina Faso and TSX. According to the CEO of Cluff Gold Peter Spivey, the acquisition of the Sega Gold Project will ensure consistent cash flow from the development, initial production and final development of the company’s assets located in Baomahun in Sierra Leone.