Update on Bantou 2019 Exploration
MONTREAL, April 30, 2019 /CNW Telbec/ - SEMAFO Inc.
("SEMAFO") (TSX: SMF) (OMX: SMF) is pleased to announce completion
of the previously announced acquisition (the "Transaction") whereby
SEMAFO acquired all of the issued and outstanding shares of Savary
Gold Corp. (TSXV: SCA) ("Savary"). SEMAFO is also pleased to
provide an update on the Bantou 2019 exploration program.
Completion of the Savary Acquisition
Under the terms
of the Transaction, all Savary issued and outstanding common shares
were exchanged on the basis of 0.0336 SEMAFO common shares for each
Savary common share. Upon closing, SEMAFO has approximately 333.1
million common shares outstanding. Savary common shares are
expected to be de-listed from the TSX Venture Exchange on
May 2, 2019 or shortly
thereafter.
"With the completion of the acquisition, we have greatly
strengthened our development asset base and growth profile. The
combination of Savary's Karankasso property and our Bantou property
produces a 1,250 km² district-scale land package on the prolific
Houndé Greenstone Belt in a country where we have a 20-year
history. With our robust cash flow profile, clean balance sheet,
and strong development pipeline, we have solidified our positioning
as a leading intermediate gold producer and are well positioned to
deliver long-term shareholder value," said Benoit Desormeaux, President and Chief Executive
Officer.
Update on Bantou 2019 Exploration
The 2019
exploration budget for Bantou had initially been set at
$3 million and involved one drill
rig. Currently, three rigs are mobilized on Bantou, and the budget
is in the process of being revised upward. "We are
encouraged with our progress at Bantou and anticipate having the
first set of drill results in early June. In the third quarter, we
will provide an update on the Karankasso 2019 exploration program
and the overall exploration strategy for the entire 1,250 km²
district-scale land package." said Richard
Roy, Vice President, Exploration.
About SEMAFO
SEMAFO is a Canadian-based
intermediate gold producer with over twenty years' experience
building and operating mines in West
Africa. The Corporation operates two mines, the Boungou and
Mana Mines in Burkina Faso. SEMAFO is committed to building
value through responsible mining of its quality assets and
leveraging its development pipeline.
Forward Looking Information
This press release contains forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and assumptions and accordingly, actual results and
future events could differ materially from those expressed or
implied in such statements. You are hence cautioned not to place
undue reliance on forward-looking statements. Forward-looking
statements include words or expressions such as "expected",
"strengthened", "growth", "profile", "pipeline", "well positioned",
"to deliver", "long-term", "in the process of", "progress",
"anticipate", "will", "strategy", "building", "leveraging" and
other similar words or expressions. All statements other than
statements of present or historical fact are forward-looking
statements, including statements with respect to SEMAFO's business
and growth strategies, prospects, operations, projects, development
and exploration plans, and the benefits of the Transaction to
SEMAFO.
Factors that could cause future results or events to differ
materially from current expectations expressed or implied by the
forward-looking statements include the ability to (i) integrate the
businesses of Savary and SEMAFO, (ii) realize the anticipated
benefits of the Transaction, (iii) deliver long-term shareholder
value, (iv) have the first set of drill results from Bantou in
early June, (v) provide an update in the third quarter on the
Karankasso 2019 exploration program and the overall exploration
strategy for the entire 1,250 km² district-scale land package, (vi)
execute on our strategic focus, fluctuation in the price of
currencies, gold or operating costs, mining industry risks,
uncertainty as to calculation of mineral reserves and resources,
delays, political and social stability in Africa (including our ability to maintain or
renew licenses and permits) and other risks described in SEMAFO's
documents filed with Canadian securities regulatory authorities.
You can find further information with respect to these and other
risks in SEMAFO's 2018 Annual MD&A, and other filings made with
Canadian securities regulatory authorities and available at
www.sedar.com. These documents are also available on our website at
www.semafo.com. The forward-looking statements in this press
release reflect SEMAFO's expectations and assumptions on the date
hereof and are subject to change thereafter. SEMAFO disclaims any
obligation to update or revise these forward-looking statements,
except as required by applicable law.
Website: www.semafo.com
SOURCE SEMAFO