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Semafo Inc. Closes C$40.5 million Bought Deal and Provides Details on Use of Proceeds

Wednesday, June 24th, 2009

SEMAFO Inc. (TSX: SMF) is pleased to announce that it has closed its previously announced public offering, on a bought-deal basis, with a syndicate of underwriters (the “Underwriters”), led by Thomas Weisel Partners Canada Inc., and including Jennings Capital Inc., Haywood Securities Inc., BMO Capital Markets, Clarus Securities Inc., Blackmont Capital Inc., and PI Financial Corp. Semafo issued a total of 17,850,000 common shares at a price of C$2.27 per common share for aggregate gross proceeds of C$40,519,500.
Semafo intends to use a portion of the net proceeds of the offering for resource definition and plant expansion at the Mana Mine in Burkina Faso. Benoit LaSalle, President and CEO of Semafo, stated: “This financing puts Semafo in the position of being able to fast-track Mana’s reserve/resource development and with it an increased production profile.’’
Semafo intends to carry out 110,000 meters of drilling and expanding the existing plant from 4,500 tpd to 6,000 tpd in bedrock. The aim of this exploration program will be to add 1.0-1.5 million ounces to reserves/resources and increased annual production of 10,000-15,000 ounces.
Benoit Desormeaux, COO, added “The 110,000 meter drilling campaign has begun with the first 2 drill rigs at work, while 2 additional drill rigs will arrive on site in July and November 2009. Investors can expect regular news flow as results become available. Engineering is advancing well on the plant expansion. Our operating team will oversee construction with commissioning scheduled in late Q2, 2010.’’
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