orezone-worker

Orezone employee in Burkina Faso (Image: Orezone Gold)

A look at a few of the mining headlines out this morning that caught my attention with some follow up comments on each.

Orezone - (ORE:TSX) - A $6.5 million dollar private placement has been announced with the plans to offer 21,666,667 shares at 30 cents per share. The bigger news is that legendary mining investor Ross Beaty will be subscribing for shares in the financing.

Orezone will be using the $6.5 million to advance the large Bombore project including continuing the mine permitting process, optimizing project economics, and general capital.

Mr. Beaty has actively been adding to positions in junior mining companies in the last couple years. We detailed his investments a couple months ago in a post that can be found here.

"We welcome Mr. Beaty as a significant new Orezone shareholder that complements an already strong shareholder base," said Ron Little, chief executive officer of Orezone. "Mr. Beaty is well recognized for his successful track record in building mining companies and his selective approach to investments in the mining sector."

Bombore is a largest undeveloped gold project in Burkina Faso that can be developed in stages.

Investors will be watching an election in Burkina on October 11th.

I believe that ORE could be a takeover candidate when major companies have more certainty over the Burkina Faso mining code post elections.

The market likes the news so far with ORE shares trading up 5.88% early this morning.

Read: Orezone Arranges C$6.5M Investment that Includes Ross Beaty

Related: Orezone Gold is a legitimate takeover candidate or Ross Beaty’s latest junior mining investment

Kaizen Discovery  (KZD:TSXV)  and  AM GOLD (AMG:TSXV) - Kaizen arguably one of the best technical teams in the exploration space has entered into an agreement with AM Gold to acquire the Pinaya copper-gold project in Peru.

Pinaya is an advanced stage project with a 43-101 resource estimate measured+indicated of 280 million pounds of copper (0.39%) and 452,000 ounces of gold (.44 g/t). Inferred resources contain 314 million pounds of copper and 307,000 ounces of gold.

AM Gold will receive 15,384,615 common shares of Kaizen and a cash payment of C$500,000.

A transaction will also be made with Rokmaster resources who has been in arbitration over the Pinaya project.The consideration payable by Kaizen to Rokmaster is two million common shares of Kaizen and C$300,000.

"The planned acquisition of the Pinaya Project is a major step forward for Kaizen on its growth path of assembling a diversified portfolio of high-quality mineral projects in the Americas and the Pacific Rim," said B. Matthew Hornor, Kaizen's President and CEO.

"Given the size and quality of the resource delineated at Pinaya, and the significant potential to discover additional mineralized systems, we expect our acquisition of the project will gain the support of Kaizen's strategic Japanese financing partners in furthering the pursuit of Kaizen's long-term objective of delivering key minerals to Japan's industrial sector," Mr. Hornor added.

John Fiorino, CEO of AM Gold, stated, "Kaizen has a strong balance sheet, an experienced exploration and development team, and also has access to capital to continue advancing the Pinaya Copper-Gold Project. Completion of this planned transaction will enable AM Gold to unlock Pinaya's present, inherent value. In addition, through a significant share position in Kaizen, AM Gold also will have exposure to the growth of a diversified exploration company."

Kaizen continues to add properties to the portfolio and has a solid financial position of approximately $9.5 million (Q1 2015).

2015 Exploration programs have been under way in Canada since late April at Coppermine in Nunavut and Aspen Grove and Tanzilla in British Columbia. Drilling is planned at all three projects and we should see some news I figure in the next 4-8 weeks.

Read: Kaizen Discovery enters into definitive acquisition agreement with AM Gold to acquire the Pinaya Copper-Gold Project in Peru 

Related: Exploration Titans Cook, Broughton Talk Kaizen’s Discovery Trail (TSXV:KZD)

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This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.