TSX-listed SEMAFO reports that it has subscribed to 33,333,333 common shares of TSXV-listed Savary Gold 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.
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.
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.
About Savary Gold is a Canadian exploration company, along with partner, Sarama Resources , are focused on exploring the Houndé South and Serakoro 1 Gold Properties in Burkina Faso, West Africa.
The properties cover 688 km2 and are located within an emerging gold camp, located 130 km southwest of Semafo’s Mana Mine and 60 km south of Endeavour Mining’s Houndé project.
The properties are in the Birimian age Houndé Greenstone Belt, which hosts Semafo’s Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining’s Houndé Project, Roxgold Yaramoko Project and Sarama’s South Houndé Project, which is adjacent to Savary Gold’s property).
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