SEMAFO Inc.
TSX : SMF

SEMAFO Inc.

June 02, 2009 07:45 ET

Semafo Inc. Enters Into a Bought Deal Agreement for Gross Proceeds of C$40.5 Million

MONTREAL, QUEBEC--(Marketwire - June 2, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Semafo Inc. (TSX:SMF) has today entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc. (the "Underwriters") under which the Underwriters have agreed to buy 17,850,000 common shares (the "Common Shares") from Semafo on a bought-deal basis and sell them to the public at a price of C$2.27 per Common Share. The Company has also granted to the Underwriters an over-allotment option to purchase up to an additional 2,677,500 Common Shares at the same price.

The gross proceeds raised from the offering will be C$40,519,500 (C$46,597,425 if the over-allotment option is exercised in full). The offering is subject to the approval of the TSX. The Common Shares will be offered in certain provinces of Canada by short form prospectus, and in such other jurisdictions, including the United States and in those jurisdictions outside of Canada which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements. The offering is expected to close on or about June 23, 2009.

Semafo intends to use the net proceeds of the offering for exploration and plant expansion at the Mana Mine and for general corporate purposes.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act. This release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any state thereof where such offer or solicitation would be unlawful.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Semafo Inc.
    Benoit La Salle
    President & CEO
    (514) 744-4408 or Toll Free: 1-888-744-4408
    blasalle@semafo.com
    or
    Semafo Inc.
    Sofia St Laurent
    Communications
    (514) 744-4408 or Toll Free: 1-888-744-4408
    sstlaurent@semafo.com