Orezone Raises a Combined US$189M to Fully Fund Bomboré into Production

0:11 Hi everyone and welcome to Orzone Gold live investment summit today hosted by 6. I'm pleased to introduce our speaker for today, President and CEO Patrick Downey. Patrick will walk us through a company presentation and then we'll be taking questions live. Remember you can submit your questions on the Q&A panel on the right-hand side of your screen at any point during the presentation.

0:33 And as always, this event is being pre-recorded, is being recorded, and will be available to you on SIX.com afterwards. Without further ado, I'll hand it to you, Patrick. Thank you, Dasha, and welcome everyone. I'm currently on camera but I'm actually in Burkina Faso right now and I'll switch off my camera just to make sure that the bandwidth is good so I'm sure you're all happy that I'll not be doing this face to face.

1:00 So a quick introduction, I'm really pleased and thrilled to have this opportunity to provide details of our recently announced financing. This is a major milestone for the company and something we have been patiently working and advancing over the past 14 to 16 months. The terms are very competitive and flexible for a junior company in Burkina Faso, and we are extremely pleased with this package that will fully fund Bombore to production. In that regard, I really want to take a quick minute here to thank the whole Orzone team who have worked extremely hard and patiently to get us to this stage. Now it's on to the easy part, building the mine on time and on budget. So with me today to answer any difficult questions are Peter Tam, Chief Financial Officer, and Louis Archambault, VP Corp Dev.

1:50 So forward looking statements, I'm sure you'll take a lot of time to read those extremely carefully. So transaction highlights, obviously the highlight number is 189 million US were now fully funded to commercial production. It consists of a senior debt facility of US 96 million from Corus Bank International, a convertible node facility of US 35 million from resource capital and BD investments. And we have just closed the equity offering of approximately US $58 million at $1.05 Canadian a share. So syndicate bought deal, totaling 189 million. Key for us, no gold hedging, no off takes, or a cost overrun reserve required for the debt facility.

2:42 The debt covenants are critical for us. They're very in our favour in terms of allowing expansion flexibility for both the oxides and sulphides, which I'll walk you through a little later on. And the project remains completely free of gold streams and private royalties. So it preserves the upside for the shareholders. And we're on track for 1st gold production in Q3 of 2022. The lenders, I'm proud to introduce Corus Bank International. They are one of the largest and fastest growing banks in West Africa. They have successfully funded mining projects in West Africa.

3:30 They have been a shareholder of Ovisca Landscape and Country, which for a junior company is extremely important. RCA for our single largest shareholder, they have been highly supportive throughout all our development process. They have 2 board members, and we have a very strong working relationship with them. And finally, I'm extremely pleased to welcome BD Investments on board on this, our journey forward to production. They have selectively been involved with successful mining projects, but this is their first investment outside of North America and that gives us a great pleasure to welcome them on board as we move forward to production. So the senior debt facility approximately US 96 million, the lender is Corus Bank International.

4:20 It is denominated in SIFA, the West African currency, which is tied to the euro. And it's split into a medium and a short term loan. The medium term loan will fund construction costs and the short term loan will fund any remaining capital spent at the very end and initial working capital and is at a lower interest rate. The senior loan is for 5 years with a short term loan of 32 million for 1 year. And this segmented structure is very, very important for us at Orozone. It allows for a more cost effective lending structure in view of what we are trying to do in terms of expanding the projects, both on the oxides and on the sulfides, which we believe will grow. And the terms and conditions, as I said, no gold hedging, no off takes, no cost overrun facility.

5:11 The debt covenants allow for those expansions. So again, we're very, very pleased to get such a very competitive debt package in under current circumstances. And I'd like to take a quick word here to Cutfield Freeman, who were our advisor during this process that did a great job for us during difficult circumstances in the junior market with COVID and various other things. And so it's important that we've got to the finish line. So the senior debt facility, the median term loan is 64 million, which is a 35 billion SIFA, 5 year term interest rate at 9% per annum. First drawdown will be December 31, 2021. And principal payments are deferred for the first 24 months.

5:58 Early repayment penalties would range from 2% to 3%, so again, very competitive. The short term loan, 32 million approximately, 17.5 billion SIFA, 12 months from first drawdown and an interest rate of 8%. And the first drawdown on this loan will commence after the full drawdown of the medium term loan.

6:23 Convertible note of 35 million US, the note holders are RCF and BD as I've said, it's denominated in US dollars, it's a 5 year term, interest rate of 8.5% per annum, of which we can pay up to 75% in common shares of our option. It's convertible at a 30% premium to the equity offering price of a Canadian $1.05. And there is a forced conversion facility in there at our election at up to 50% of the outstanding principal when we've reached commercial production and traded at 20% of over 50% of the conversion price at a 20 day VWAP. And there are no upfront fees.

7:09 So again, in great hands, and again, gives us flexibility on the expansions that we want to do over the period of time on the project. Does not put us under pressure. Equity offering very well received, 58 million US. It was co-led by Canaccord, Genuity, and CIBC with Raymond James, PI, and Sprott in there. We issued 61, almost 62 million shares for 65 million original and the underwriters purchased an additional 8.3 million shares to add another 8.7 million Canadian. So the total issued shares are 70.2 million for gross proceeds of 73.7 Canadian or approximately 58 US.

8:02 So why are we doing this? I want to remind you what is this all about. Well, we issued the updated feasibility study in 2019. Very robust economics at $1,300 gold, after tax IRR at 44% and an after tax NPV at 361 million. Because we're right on surface here, a very low strip ratio, good grades at the front end, very high payback even at $1300 gold. And this includes the sulfide expansion capital of just over $65 million, which will be spent in year 2. Obviously, the current gold prices are even at $1,750. It's a higher payback.

8:47 Our after-tax NPV goes up to US$733 million. Our after-tax IRR is 88%. And our payback is less than a year, including the capital required for the sulfides. Therefore, we've structured that debt in 2 pieces, and we can pay back a piece very, very quickly in the first year and gives us optimum flexibility on the expansion capital, which would allow us to, because there's no preferential sweeps on this debt, it will allow us to go on a bigger expansion should we deem it appropriate at that time. 13 years mine life, we're very convinced and confident we'll go beyond that. And our gold production, 1.6 million ounces produced, Again, we're very convinced we'll go beyond that.

9:34 And very, very impressive all in sustaining costs. Quite similar to most projects in West Africa, we're no different than most of them, but again, very good margins compared to the Americas or the rest of Africa, which is really South Africa with the deep mines and high costs. Phase 1 oxide is 153 million capital. Obviously, we do open up what's called the OCR or the water reservoir. That releases about 5 million tons of ore, and that's an additional part of the CAPEX, or the upfront CAPEX, although it is really a part of the operations. Obviously, we've got working capital in there, we've got corporate G&A, local G&A and financing costs.

10:26 So we can't build a mine without community support and we de-risked this project. We completed the wrap with our team here, you know, very successful. Corus, who visited the project, RCF, who obviously visited the project, Corus were extremely impressed. They know the local situation. They were able to get out, walk around, talk to the people. They didn't know these guys were lenders. And the feedback was how well we were thought of within the local communities, how successful we've been and how happy they are with the work that we've done. We built over 1100 houses here, churches, mosques, clinics, schools, we've done CSR programs and this went extremely smoothly. And this has allowed us access to the project. We've done our great control drilling on that OCR, which will be the first area mined.

11:17 And So we're there now, we're ready to go. Again, we can't do this without the local support and it's been very, very strong. Simple project, people ask How come African projects or West African projects can be built so fast?

11:34 Flat topography, no drill and blast or cut and fill to put your foundations in. Very simple logistics, well-established logistics. We're literally a couple of kilometers off a major paved highway. Mining standard truck and shovel were free dig for the first number of years in the oxides. Very simple no drill and blast, low pit maintenance, conventional CIL, very quick leach, low work index and very fast leach kinetics. So we just announced that we selected Leica Podium for our EPCM. We're pleased to have them on board. They have a fantastic track record in West Africa and Burkina. You can see the list of projects here on the left. And of those, Leica Podium have completed Hyundai, Eti, Wignon, Sisingwe, Bisa, Focola, Mako, Sanbrado and Yaere ahead of schedule and under budget.

12:32 And that's key for us. And when I say we're, we will be producing gold in Q3 2022. That's based on LICO schedule to complete this work. One other thing I love to point out to investors is on the left hand side here, sorry, on the right hand side here is how quickly you could opt to full production. And that's huge in terms of your nav. You know, when you've got a slow start, it takes you time to commission it, etc. It detracts from the cash flow and detracts from the return to your investors. In West Africa, that's not the case. Within 31 days, you're up to full tonnage. And Lycopodium and our team are extremely confident we will beat that, that we'll be up to full production within that 31 days, because we've got a very simple circuit up front.

13:18 No crushing, single stage grinding, 24 hour leach, straight out into tailing. So very simple circuit. So we're really excited to get started here. So the value proposition we're trading is just about 0.4 NAV. You can see WAF, who's right beside us, they're trading 1.35 times NAV now. They built that mine in a year, You know, from clearing and grubbing to producing gold was a year. You can see pure golds have performed really well, or was performed really well, all single asset companies. So we think there's a huge value proposition here as we go through construction into operation. And just to illustrate that, we've taken 4 single asset companies, 2 in Burkina and 2 in Canada. And critical to these is that they started up well. Obviously, Pretium had a bit of up and down after that, but it had a very good start into production.

14:16 Atlantic Gold, a very successful project in Canada, and then ROX Gold and West African Resources. And you can see from start of construction to commercial production, 125% share price appreciation. And we expect no different here. We think there's huge value for our shareholders coming in. And that's based on our current throughput. And again, with this financing package, we're very confident that we can expand that production because we've got huge flexibility on the debt package.

14:51 So we're fully funded. So what's next for us? Long lead item, the critical path is the ball mill. It's spec'd out now. We're gonna be selecting that and then placing the order in March of this year. Then we will award a contract. I'm here in country right now. I'm meeting with the shortlist on this weekend that we expect to award that here in the next couple of weeks. All new equipment, so we're again, expect very competitive mining here. All free dig, short hauls. Commence construction of our auxiliary facility. We've got site facilities, that's bridges, roads, fencing, etc. Our team's on site for that now. We'll be getting going on that in the next week or 2.

15:39 Our power supply contractor is here with us on site right now. We expect to finalize that award here in the next month or 2. Again, we think that would be extremely competitive. The detail engineering is flying ahead. The detail schedule is in place right now with Leica Podium. They will get onto site here in March, April, and several works will start around that same time with ongoing construction throughout 2021 into 2022. So look for that. We'll be putting videos on site. We were selected as mine of the month here in Burkina Faso a couple of months ago, so there's lots of videos about that. We were very proud of that. They interviewed the local communities, etc. But we will be posting videos and photographs as we progress through construction into production.

16:30 We're excited to be the next mine in Burkina and likely West Africa. There's a scarcity of permitted shovel-ready projects. A couple of months ago, there was 4 of us waiting to get out of the taxi rack here to get going, And Orla obviously got going. We're next out of the rack. And we expect that share price appreciation here. And just to remind you a little bit

16:58 about Bombori as a project, a $1,300 goal, as I said 44% IRR, 360 million dollar after tax NPV. At 1500 it's 61% and 520 US. At 1750 it's 88 and 733. So huge upside for the project. West African projects generally built on time on budgets. We expect no hiccups here. We're ready to go. Huge government and local support. We're really excited to get moving here. Teams in place and we're ready to go. With that, you know, again, I'd like to say thanks to everybody who supported us throughout this process. It's difficult for a junior company to get that debt financing under competitive terms, but to get where we got in Burkina Faso, it speaks volumes for the project and what we've done.

17:53 So with that I'll hand you back. Great, thank you so much for taking us through your presentation. We're going to head into the live Q&A now because there's lots of questions lined up. So Ali is asking, will there be exploration within the building time frame? That's a great question, Ali. What we're very pleased about is the flexibility on the financing. So there's no preferential cash sweeps here. So let's say we get this built a little bit under budget, we can use that cash to explore. Look, we would love to explore right now. And it's very difficult for a junior company to do that when you're building it. We think we've got that flexibility. We think P17, which we discovered and delineated in 2018-19 has got huge exploration upside, high-grade near surface.

18:43 We'd love to get into that. We've done some great drilling up in the north in Maga and some of the other ones on the high grid areas that we've seen. And I wanted to let everybody know that we are working on a new resource. It will be a new reserve. It'll be out hopefully in early Q2. And again, we think that will show the upside to the project. So yes, we'd love to, and we hope to. Great. Luke asks, the economic slideshow, a capex of 153 million for the oxide and 63 million for the sulfide for a total of 216 million. The announced financing is for 182 million, a difference of 34 million. Can you comment on the difference?

19:31 Well, first of all, look, I want to congratulate you on your math. So we actually don't build the sulfides right away. We mine the first year of oxide and then we use the cash flow from the oxide to build the sulfide. So it's actually no more debt required. And again, I wanna emphasize how flexible our debt package is to allow us to do that. And believe you me, we think the sulfide should be bigger. We really, when we were looking at this, we were looking at $1,300 gold. We were looking at a different debt package that was much more restrictive in terms of what we did. So we kept that sulfide expansion in a manageable size. Now, we believe we should be looking at something bigger and we will look at that, obviously, depending on the gold price. So no further debt required.

20:19 The sulfide comes out of the cash flow. Great. Harry asks, since the loan taken is in XOM Euro Tide, Is there any hedging or will CapEx be in Euro tied as well? Or will there be any currency hedging? No, a lot of the the CapEx is in Euro and obviously in the local currency. Like we pay a lot of the contractors in the local currency, etc. So we've sort of got a natural hedge there. And when you look at the debt that we're taking on locally, it's about 90 million dollars of the total package. So we're really getting a natural hedge in country.

21:02 Great. Harry asks, what is the current COVID-19 situation in Burkina Faso? Are you dependent for the build on people that need to travel in and out of Burkina Faso?

21:16 And how about imports? OK, that's a great question, actually. So we were thinking about this early on, obviously when COVID hit the country shut down then it had a restriction coming in for a long time and then it was 2 weeks quarantine when you got in. During all of that, Lycopodium and Perseus were building a mine in the next door country, which was under exactly the same restrictions. And so we followed that closely. We're actually quite close to the Perseus Group. And so they were able to let us know all the things that they did, and they actually got it done, built ahead of schedule and under budget. So we have quite strict protocols. We've just gone over them. I'm down here in Burkina now. We reviewed them with like a podium, so that we will be putting those in place. We see no effect on the budget or schedule at this point in time.

22:10 And obviously, we'll keep a close watch on all of that. Everybody who comes in will have to have a certificate showing that they are negative. We will test them when they come in and we will test them before they go out. And we will test them with rapid test work. I think it's once a week for every person on the site. We will divide people into select work groups so that you stick within a little bubble. And so we're quite confident and we want to protect the local communities here and ensure

22:38 that nothing happens. The situation here in Burkina and in the rest of West Africa has not been hit as hard as Canada, North America, South Africa, Brazil. People aren't sure exactly why that is, but we obviously will continue to monitor, but it's not a very high existence of COVID right now. That's great. So the next question is, what's the current cash balance? How much capital will be spent per quarter in 2021 and 2022 up until Bombar's construction completion?

23:20 Well, we haven't got the exact cash waterfall, Peter, I don't know if you want to answer that a little bit more, what our cash balance is and what we think we'll be spending in. We've obviously only drawing down on the main loan in December. So we expect to spend something in the region of 60, 70 million in the rest of this year, maybe 80? Yeah, current cash balance is around 8 million US. And once we get going on a full construction here, our spending is going to be roughly about $10 million a month here. So you can use that roughly as a baseline. Okay, good. Thanks. Thank you. Alex asks, how will OreZone mitigate the high risk of political violence in the region, both during construction and operation phase?

24:08 What is the contingency plan if activities must be stopped in case Islamic insurgencies would prevent construction or operation of the mine? Okay, another great question. So, look, we're in a great location in Burkina, you know, I feel safer walking around here than I did growing up in Ireland, to be honest with you. But, so, you know, the insurgency is generally restricted to the North and East. Obviously, we have a very secure camp. We've built all our security systems. You've got a highly experienced security manager and the banks wanted to know that. And I'll tell you, people like BD who, you know, never invested outside of North America, let alone Burkina. And so we were able to satisfy them about the security situation.

24:56 We keep a close eye on it. It has generally calmed down in Burkina recently, but it is generally restricted to the north and to the east. We have never seen any of it. We traveled a site by a paved highway. We're not on dirt roads. The import of goods has not been affected in any way at all. And there was 2 mines built during the height of this when it really was in the forefront of everybody's mind. One being Wanyan, which is in the south, which is Tarangor now, Endeavors, and then obviously Sanbrato right beside us. And they were both built ahead of schedule and under budget. But the key thing for us is making sure that any expats that we have feel safe, and they all do, and they've all remained with us.

25:48 And if you were actually here, you really would think that you're in a very, very safe jurisdiction. Great. Cam asks, can you expand on the phase 2 expansion and what it means to your NAV at 1,750 Gold? Well, the phase 2 expansion, there is a very, very large sulphide ore body underlying the oxides here and it's around a gram and a current Gold price is obviously that's very, very profitable. But we've always looked at mining the higher grades and we did all of our reserves at under 1200 and we did our economics at 1300. So the expansion we're looking at right now is around 65M.

26:34 It integrates right into the oxide so all of the back end of the plant, the CIL, the tailings, etc. Is exactly the same, the gold recovery circuit. So, that's why it's so economic in that regard. The economics that I showed you in 1750 show that same NPV and IRR. They are based on that Sulphide expansion. That was done in 2019, that study. If we go Beyond 2.2, which again, we're only mining the sulphides at this point in time down to 95m, which is quite shallow. And obviously, if we build a bigger sulphide plant and we expand that, the economics become extremely robust, way beyond the 88% and the, I think it's 800 million NPV.

27:27 James asks, are there any reclamation concerns that we should be aware of? Well, no, it's a very clean old body. And what we have to, by law, we have to have a reclamation plan in place done by outside consultants, or done by obviously, recognized North American consultants, but they have to do it to all of the laws and norms here. So our closure plan has already been submitted. And every year, which is included in the economics, you have to take part of your cash flow and put it together in a segmented account to pay for closure. Obviously we expect that's based on a 13-year mine life. We expect to go long beyond that. Actually, what I really love about this project at the end of the day, when we do eventually close, is the legacy we will leave.

28:15 The Killings area will become reclaimed as farming area. We leave a permanent year round water supply which they do not have and could not have in this area, but we're building 1. That remains with the communities. And we will leave that there, including all of the pumping systems and the solar power with it. So, you know, the legacy of the mine will be long here long after we're gone. And one other thing, if you look at the layout and you know, starting to hear, we actually build noise and sound barriers right outside the project on the perimeter with mine waste, which is inert oxide. We start planting that right away. We've got a nursery going right away. So you won't even be able to see the mine when you drive up to it.

29:02 It'll be completely out of sight behind seeded and grassed areas that will start in year 1 of operation. Right. Harry asks, What would be the approximate working capital requirements when you start mining according to your current estimate? Great question, Peter. What was that? A couple of, 4 or $5 million, I guess, of working capital? Yeah, this is not a complex processing plant, so we're not going to be holding a lot of spares. Working capital, again, it's really, it would be our consumables. Again, it's easy access where we're at, but there's a lot of mines in Burkina. So getting consumables into the country is not an issue for us at all. So I would say probably in the $4M to $5M range. Yeah. And I'd say, you know, so cyanide and stuff comes in from Ghana. You know, there's a major supply terminal already there.

29:56 Limestone comes in from there as well. You know, a lot of the other stuff is local. We'd be the 14th operating mine here. So, you know, a lot of supplies come into country and the supply chain is very, very secure. Justin asks, you mentioned 125% gains in 18 months of digging. What type of performance can be expected after those months? Well, if the gold price hangs up above that, I think we'll see even more gains. But obviously, we get it. We've got to get into successful commercial production and then show what the expansion is. So, you know, I can't tell you that, but obviously we would expect an improvement from there, yes. And by the way, you know, I like to point out, we as management and board, We are major shareholders of this company.

30:48 And that's one of the reasons we negotiated a very competitive debt package, because prior to the financing, we as management held 5.8 percent of this company, which we bought on the market. And So we are very, very tied and excited about this project. Well, Sherman says, first of all, Patty, incredible work to Patty and team. Clearly the market cap of Orzone leaves much upside for current shareholders. Can you comment on the overall marketing strategy for Orzone? In light of the digital marketing world, how do we get the Orzone story told globally in order to unlock all its hidden value? Well, with how Sherman and let him do it. I mean, you know, we obviously look at that. I mean, there is a huge market that we just dipped into that, you know, this year. I'm not the guy to really answer that because, you know, I can barely turn on my computer.

31:45 But We are looking at the marketing strategy and how that works. I mean, I think the whole mining industry should be looking at that when I see some of the things that happen in other industries and how they get eyeballs on stories here, because Gold will remain a key focus here going forward, particularly in light of what's happened with COVID and the amount of money that's going to be printed in the US, Europe and elsewhere. So I think it's a strategy that should be looked at by mining in general, and certainly we will be focusing on it. All right. There are a few questions here about security. I know you briefly talked about it, but Matthew is asking, could you elaborate on your relationship with the government of Burkina? As a partner, Are they involved at all with maintaining the security environment?

32:34 No, they're not involved with maintaining security, obviously, but there's police forces and they've got the army. We're one of the lucky, you know, ourselves in West Africa, and there is a artillery range like this, so we've got a major military presence, which is a deterrent. But do we work closely with the government? Absolutely we do. The government is the shareholder of the project. It's important to work with them. I've just had meetings all this week with senior ministers, including the Minister of Mining and Energy, the personal advisor to the President. I'll be meeting the President this weekend. He's from our area. This is a very important project for him. He's a local guy. So, Yes, we do. And look, they are over the moon that we have involved a local bank here because that keeps all of the debt package in country and the investment in country.

33:26 We're just about to award our mining contract. It will be a local mining contract. That's all I will say. And so we're not bringing in outside contractors for that. You know, so, you know, they are very pleased with how we do business. And the one thing I'll say about Burkina, there's been 14, 15 mines built now, we'll be the 15th. So there's a lot of skill sets in country that you didn't have 10, 12 years ago, such as welders, steel erectors, concrete pourers, equipment operators, they are Burkina Be, our country managers are Burkina Be, our chief of finances is Burkina Be, our head of safety, same thing. You know, and the skill sets in terms of metallurgists, geologists, mining engineers are very strong in country. So there's no need to have that big expat contingent anymore.

34:27 Bernie asks, could you remind us how the seasonal weather patterns could impact plant completion? Well, there's been 14 mines built. We look at it carefully. It's sort of not like people think in the rainy season. It rains on average an hour a day during the rainy season. So it does not really interrupt. Like a podium we built, as I said, 10 successful plants in the past 4 years, I think 6 or 7 in Burkina alone. They know what happens during the rainy season. There's really no impact. The only real area you have to worry about is your tailings dam liner. You do not want to be doing that in the rainy season. You want to do that in the dry season, which is in our schedule.

35:12 But other than that, no, there's no real major effect with the rain. Obviously, for safety, if it's really, really heavy, like a big snowfall in Canada, you'll stop trucks moving for safety reasons, but that could be for an hour maximum. All right. Bruce asks, what does new resource for Q2 mean? Is that an upgrade to the resource? Yes, we did a lot of drilling in 2018-2019. We did not include it in the resource base. We wanted to move on. We think that the current resource is reasonably tight and conservative. And one of the key things that we found after we discovered P17, understood that it was not a major shear like the main zone, it's a folded W granodiorite, It opened up our exploration on the project.

36:03 We tested some targets. We had extremely high success rate. We're very excited about what we're seeing. We expect to expand P17 as we move forward. So, the new resource will include those results in the oxide and also I think show that the oxide can grow beyond where we are today and the sulfides obviously. James asks, what other polymetallic base or precious metals can we expect? There is a silver component, but we have no assays on silver. We see it comes in the metallurgical test work. We know it's there, but it's never been really assayed. But gold and silver were precious metals. There's no other, very clean ore. It's quartz free.

36:53 We don't have quartz in it, which is important for an oxide. It means you can feed it directly into the mill. So you don't have those quartz veins. Low silica or basically 0 silica. So again, low wear and tear so that you don't have wear on the mills, on the conveyors, on the pumps, etc. Because it's such a low abrasion index, which lowers your operating costs. Oz says, surprisingly, the market didn't react positively to the financing. Do you have any idea why? None whatsoever. I mean, maybe some people thought we were going to get taken out, etc. But I think once people understand this financing and what it is, I expect this stock will really move on from here.

37:39 Right. Kevin asks, will OR issue an updated LOM plan on the back of updated resources and reserve? Yes, we will. Perfect. James has another question. What is the AISC, what can the AISC expect for year 1 of production? Well, the EISC, Peter, in year 1 is about 440,450? Yeah, it's under our current study. It's just below 500. Again, we're looking at updating our mine plan, life of mine, our resources and reserves. So we'll update all of that. Once we have that, we'll update that accordingly. Yeah, so it's very low. It's good grade, low strip ratio, so it's very, very strong margins.

38:32 Great. James has another question. What kind of recovery rates are you seeing? Well the metallurgy here, we've got an absolute mountain of data. Every single meter of drilling in the ore body underwent what's called a leach well. So we know and we did we sample the tail. So we know the recovery. I can tell you the recovery of every single metre of drilling of this ore, but it's got a constant tail. So as the grade goes down, the recovery goes down. So it's generally between 84 to 92 percent recovery on the oxides and between 84 and 96 on the sulfides. Doug asks, I'm sure there was a strong rationale, but why no funding through streaming?

39:22 Because it costs the company money for the rest of its living days. And we as shareholders, we were very, you know, we, it's not that we would be against it, but at the end of the day, we see more value for us doing the debt package that we did. Very clean, very simple. And the cost of capital is there for you to see. Brock asks, what takeover premium could be expected and at what percentage of NAV? Well look, when I get an offer I'll tell them. But look, you know, obviously the key for us is to get into production because that's when we'll see the true nav value of the asset.

40:08 Then if we're getting taken over by another producer, we can both compare navs and do the math then. But For us, the first step is to get our nav to where we see properly reflects what we're doing. And again, we also wanna see, can we grow this project so that it's even better or any company coming in to look at us can see that growth and pay us accordingly. All right, Any plan to relist on the TSX? Yes. Perfect. Kevin asks, any timeline on updated LOM plan? It'll be done when the new resource and reserves comes out. So that'll be Q2 next year, this year, sorry.

40:55 So next question is, who is Khorus and how did you develop that relationship? That's a great question. So Khorus are a very well-established bank here in West Africa. They've got 2.5 billion in balance sheet. They have financed other mining projects in the region. And they approached us, they knew about the project, they actually visited it in 2018, followed us quite closely. And at the time, they didn't feel they had enough of a bandwidth to do what we wanted to do. But we continue to nurture the relationship. Our country manager here in country deserves a lot of credit for doing that work. He's a very well respected young man and he really nurtured that. They came and visited the site, they saw what we were doing and then We started the conversation with RCF and RCF got very comfortable with Corus, which is a port from that sort of relationship.

41:54 And they know the political landscape, they know the mining landscape, they're very familiar with what's going on. So it became a very, very quick run to the finish and they've come up in very, very competitive terms. We're really excited to have them on board and they know the business. Harry asks, are the CAPEX numbers including VAT? And if so, is there a VAT reclaimed during the build? Peter, I'll let you answer that. Yeah, we have a signed mining convention on our property there. And during the construction period, VAT is actually not applicable. We're exempt from paying VAT on that. So once we get into production, VAT will become payable, but that is refundable from the government.

42:39 I hope you all like Peter's shirt there. It's a very nice shirt. It's a great view. So Oz is asking, other than COVID, any other major potential hurdles? Well, great. We actually do, alongside all of our contractors, a risk register, And we look at that every month and we update it. We've got a project steering committee with 2 independent members who are highly experienced at building projects in Africa. And that's one of the benefits of having RCA by your side. And so we do that and we do update that risk register. You know, I mean, we look at everything, to be honest with you. You know, that's one of the reasons we look at elections around is, will it affect imports and ports? You know, so we've got options going to ports, etc. So, we don't see any major risks. I mean, it's a great road, great infrastructure, logistics, etc.

43:35 So we don't see any major risk. And we've had a lot of time to de-risk it, remember. I mean, you know, we did our study in 2019, and we're ready to go now. So we spent a lot of time thinking about it, let me tell you. Our biggest risk was debt financing, and now we got that. Perfect. So Jim is asking, what is the current shares outstanding and diluted shares outstanding, including convertibles? Peter, maybe you can answer that. I don't want to give a false number. I would give you the answer that is based after today's financing. Yeah, I'll just need a second. I don't want to miss it. So we'll come back to that because we just want to call up and give the right number. Right, of course. The next question is, why is the Korus loan not in USD?

44:22 Because it's a local currency and we pay it off in a local currency and it means there's no withholding tax, so it's cheaper money for us. And, you know, there's no political risk insurance on it, which is cheaper money for us, and Corus are a local bank. So that's really it. Also, another question, how much potential cash from warrants to come in and when? About 18 million Canadian, and it comes in in January of 2023. Is that right, Peter? It's actually a little less than that. We have over 18 million more. The strike on that is 80 cents, So it works out roughly to just 14.5 million Canadian. And as you said, it's expiring on that as Jan 2023.

45:09 So just over 10 US. Thank you. James wants you to discuss the taxes and royalties and fees for the area. Okay, well, there is a signed fiscal agreement. The tax is around 27.5. We obviously, we've got intercompany loans, we will not be paying that right off the bat. And then we've got a 4% royalty below $1,300 Gold and a 5% above it off, which 1% is a local community royalty that stays for projects and for the local communities. We work with the local communities to ensure how that is spent. We're on that committee.

45:54 So that's what it is. So essentially, at the current gold price, you're looking at 5% royalties and 27.5%. 27.5% is the corporate income tax. Yeah, 27.5%. All right. So why did you decide to go with EPCM instead of EPC? Well, we did get EPC bids and they were right around what we have in the study. The reason we went EPCM, we talked to other people that built mines in the area, including Taranga building, Wanyan, WAAF building in Sambrado, And we believe there's capital savings for us by going EPCM. And that's why we did it. We've got a very strong team here, both from our side on the engineering and construction and management, who've got lots of West African experience.

46:46 So we're confident that we can bring it in below what is there. So that's why we did it. You know, I mean, we could have gone for the certainty of EPC, but we wanted the potential upside. Great. Well, thank you so much, Patrick and Peter, for answering all of our questions and taking us through your presentation. I also want to thank everyone who submitted questions today. If you didn't get a chance to get your questions answered or if you think of a new one, We'll be sending out a survey where you can leave your details and the Orzone Gold team will be happy to follow up with you directly. You can also find more information on the website orzone.com. Can I just interrupt you, Dasha? We just got the capital structure. So somebody had asked that. So just before we go off here, I just wanna give you that. And now it's disappeared.

47:38 Yeah, look, it's before the financing our fully diluted share account, including the options and warrants and restricted units that we have outstanding, it's just over 291 million. Obviously with the equity raise plus the potential convergent feature on the warrants, that would take us roughly around, on a fully diluted basis, just about 390 plus million. So there you go. So on to 400 million. Okay, thank you for that. We actually just got 2 more questions. So I'm glad we didn't. Yeah. So Ron says congratulations, Patrick on the financing. Patrick, Have you been looking at other properties in Burkina and that are within operating distance from Bombari? Really, no. I mean, we've been focused on getting this de-risked and moving forward. Obviously, as we get it built, we will be looking around.

48:31 I mean, it's sort of crazy, actually, when you think about it, between ourselves and West African, we now control over 10Moz of M&I within a 14km radius. If this was Nevada, there'd be a staking rush. So, look, we think there's opportunity here, but I want to get this mine up and built first and then we can, and we think we've got great exploration potential on our own property that I want the guys to focus on. We're really only unlocking that now from a structural interpretation and we're quite excited about that. Great. So last question for today. James asks you mentioned uplifting to the TSE. Are there plans to uplift to the NYSE and if so what would be the time frame?

49:17 We haven't really thought about that at this point in time. I think we'll get into the TSX and then if things go well, as we think they will do, we will definitely look at the NYSE. We are obviously trading on the OTCQX, I think it's called. So we do trade in the US and we've got some very strong US shareholders, so we may do it, but we haven't got any plans at this time. All right. Well, again, thank you so much. And thank you, everyone, who submitted questions. Stay tuned for the survey that we will be emailing you where you can leave your details and contact the Orzone Gold team directly. And I'll pass it back to you for any final words, Patrick. Well, thanks again, Dasha. Thanks everybody for being on board. Obviously, we're very pleased about this.

50:05 It was an extremely competitive process. We think we've got a great financing package with great partners at a very, very competitive rate that truly also allows us to have such flexibility on the project moving forward because we think there's a real large resource here that's really remains on tap to this point of view. We look forward to building it, showing you how well it's built and getting into production. It's been a journey, but a great journey. Thank you. Thank you, everyone.