/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
SEMAFO TSX-SMF
MONTREAL, June 23 /CNW Telbec/ - SEMAFO Inc. (TSX: SMF) is pleased to
announce that it has closed its previously announced public offering, on a
bought-deal basis, with a syndicate of underwriters (the "Underwriters"), led
by Thomas Weisel Partners Canada Inc., and including Jennings Capital Inc.,
Haywood Securities Inc., BMO Capital Markets, Clarus Securities Inc.,
Blackmont Capital Inc., and PI Financial Corp. Semafo issued a total of
17,850,000 common shares at a price of C$2.27 per common share for aggregate
gross proceeds of C$40,519,500.
Semafo intends to use a portion of the net proceeds of the offering for
resource definition and plant expansion at the Mana Mine in Burkina Faso.
Benoit LaSalle, President and CEO of Semafo, stated: "This financing puts
Semafo in the position of being able to fast-track Mana's reserve/resource
development and with it an increased production profile."
Semafo intends to carry out 110,000 meters of drilling and expanding the
existing plant from 4,500 tpd to 6,000 tpd in bedrock. The aim of this
exploration program will be to add 1.0-1.5 million ounces to
reserves/resources and increased annual production of 10,000-15,000 ounces.
Benoit Desormeaux, COO, added "The 110,000 meter drilling campaign has
begun with the first 2 drill rigs at work, while 2 additional drill rigs will
arrive on site in July and November 2009. Investors can expect regular news
flow as results become available. Engineering is advancing well on the plant
expansion. Our operating team will oversee construction with commissioning
scheduled in late Q2, 2010."
Additional details can be found in Semafo's updated corporation
presentation that has been posted on the company's web site at www.semafo.com
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Company currently operates three
gold mines in Burkina Faso, Niger and Guinea. SEMAFO is committed to evolve in
a conscientious manner to become a major player in its geographical area of
interest, while maintaining principles and strengthening relationships to
increase shareholder value.
Forward-looking Statements
This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding the Company's expectations as to the market price of gold, strategic
plans, future commercial production, production targets, timetables, mining
operating expenses, capital expenditures, and mineral reserve and resource
estimates. Forward-looking statements involve known and unknown risks and
uncertainties and accordingly, actual results and future events could differ
materially from those anticipated in such statements. Factors that could cause
future results or events to differ materially from current expectations
expressed or implied by the forward-looking statements include, but are not
limited to, fluctuations in the market price of precious metals, mining
industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Company's Annual Information Form and
other filings with Canadian securities regulatory authorities available at
www.sedar.com. The Company disclaims any obligation to update or revise these
forward-looking statements, except as required by applicable law.
