October 19, 2006 15:49 ET

Semafo Inc.-Bought Deal

MONTREAL, QUEBEC--(CCNMatthews - Oct. 19, 2006) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Semafo Inc. ("Semafo") (TSX:SMF) has today entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Merrill Lynch Canada Inc. under which the underwriters have agreed to buy 42,800,000 Common Shares from Semafo and sell to the public at a price of $1.80 per Common Share, representing an aggregate issue amount of $77,040,000. The Underwriters have been granted an over-allotment option, exercisable up to 30 days following closing, to purchase an additional 6,420,000 Common Shares. Closing is expected on or about November 10, 2006.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Semafo Inc.
    Benoit La Salle
    President and Chief Executive Officer
    (514) 744-4408
    (514) 744-2291 (FAX)