MONTREAL, Feb. 09, 2018 (GLOBE NEWSWIRE) -- SEMAFO Inc. (TSX:SMF) (OMX:SMF) reports that it has subscribed to 33,333,333 common shares of Savary Gold Corp. (TSXV:SCA) ("Savary") at a price of $0.06 per common share for an aggregate subscription price of approximately $2,000,000 pursuant to a private placement financing of common shares of Savary previously announced by Savary on January 29, 2018 (the "Financing").
Prior to completion of the Financing, SEMAFO did not hold any shares or convertible securities of Savary. Following closing of the transaction, SEMAFO holds a total of 33,333,333 common shares of Savary, approximately 15.5% of Savary’s issued and outstanding common shares on a non-diluted basis.
SEMAFO acquired the common shares described in this press release for investment purposes and in accordance with applicable securities laws.
Pursuant to the subscription agreement between Savary and SEMAFO, SEMAFO shall have the right to appoint one director to Savary’s Board of directors or to instruct Savary to insert in its next proxy circular a SEMAFO nominee for election at Savary’s next shareholder meeting. SEMAFO shall keep this right as long as it continues to hold no less than 10% of Savary issued and outstanding shares on a non-diluted basis.
The closing of the private placement of common shares remains subject to final approval of the TSX Venture Exchange. The common shares issues are subject to a four-month and one-day hold period in accordance with applicable Canadian securities laws, from the date of closing.
A copy of the early warning report to be filed by SEMAFO in connection with the Private Placement described above will be available on SEDAR under Savary’s profile.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposit of Siou, and is targeting production start-up of the Boungou Mine in the third quarter of 2018. SEMAFO’s strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.
The information in this release is subject to the disclosure requirements of SEMAFO under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on February 9, 2018 at 10:00 a.m., Eastern Standard Time.
For more information, contact
SEMAFO
John Jentz
Vice-President, Corporate Development & Investor Relations
Email: John.Jentz@semafo.com
Ruth Hanna
Analyst, Investor Relations
Email: Ruth.Hanna@semafo.com
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
Website: www.semafo.com