SEMAFO Applies for Secondary Listing on NASDAQ OMX
MONTREAL, QUEBEC -- (Marketwire) -- 09/28/11 -- SEMAFO (TSX: SMF) today announced the Corporation's decision to apply for a dual listing of its common shares on the NASDAQ OMX Stockholm exchange in Sweden. The listing is expected to be on or about October 20, 2011, subject to regulatory approvals.
No new shares will be issued as part of the secondary listing, but current shareholders will be able to convert their shares traded on the Toronto Stock Exchange to shares traded on NASDAQ OMX Stockholm.
The dual listing decision reflects SEMAFO's desire to facilitate the participation of European investors seeking exposure to SEMAFO and to the West African gold sector.
'Our application for a dual listing on the NASDAQ OMX Stockholm is the next logical step in our value-creation strategy,' said Benoit La Salle, SEMAFO's President and Chief Executive Officer. 'This advancement will provide European investors with the opportunity to take advantage of SEMAFO's unique savoir-faire and consistently solid operating results.'
SEMAFO was founded in 1995; a grassroots exploration company with the vision to build an ethical, reputable world-class gold company through a combination of exploration, development and acquisitions. Today, operations have evolved and the Corporation is a three-mine gold producer with a solid platform for sustainable growth. SEMAFO's gold production has increased by 175% over the past five years to attain a record 261,100 ounces in 2010.
Last year, SEMAFO also achieved record production, revenues, net income, cash flow from operating activities and operating cash flow per share, while cash operating cost remained comparable to the previous year.
During the first six months of this year SEMAFO produced 128,800 ounces of gold and the Corporation remains confident that it will attain its 2011 production guidance of between 238,000 and 263,000 ounces of gold at a cash operating cost of between $595 and $645 per ounce.
This year, due in large part to the successful year-to-date exploration results, SEMAFO will invest $48.5 million in exploration. This includes $38.5 million in accelerated and expanded exploration programs on more than 1,195 km2 of permitted land at its flagship Mana Mine in Burkina Faso. Discoveries to date are situated over less than 10% of the structures identified on the Mana property, which attests to the area's exceptional potential to become a mining district. Mana currently accounts for 69% of SEMAFO's annual gold production.
SEMAFO recently announced plans to increase Mana's processing capacity by 6,000 tonnes per day ('tpd'). The expansion project is aimed at increasing capacity at the plant to 14,000 tpd, representing as much as an additional 120,000 gold ounces annually and potentially bringing Mana's total production to more than 300,000 ounces per annum. This phase of expansion is in consideration of the positive drill results received from the Fofina, Fobiri and Yaho zones. The expansion is scheduled to begin in early 2012 and is expected to be completed during the second half of 2013.
As part of the preparations for the secondary listing, SEMAFO has entered into an agreement with Euroclear Sweden regarding the affiliation of the Corporation's common shares.
Erik Penser Bankaktiebolag is the financial adviser and liquidity provider and Mannheimer Swartling is the Swedish legal adviser for the listing process.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
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 'apply', 'expected', 'on or about', 'facilitate', 'next', 'value-creation', 'will be', 'will provide', 'opportunity', 'take advantage', 'consistently', 'remains confident', 'will attain', 'will invest', 'includes', 'attests', 'potential', 'plans', 'is aimed', 'additional', 'more than', 'scheduled', 'expected' and other similar words or expressions. 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 of the listing to take place on or about October 20, 2011, the ability to meet our 2011 production and cash operating cost guidance, the ability for throughput at Mana to yield a capacity of 14,000 tonnes per day, the ability to increase gold processing by 120,000 ounces annually or increasing Mana's total gold production to more than 300,000 ounces per annum, the ability to commission the plant expansion by Q2 2013, the ability to 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 2010 Annual MD&A and 2010 Annual Information Form, as updated in SEMAFO's 2011 First Quarter MD&A and 2011 Second Quarter 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. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
Contacts:
SEMAFO
Benoit La Salle, FCA
President & CEO
514-744-4408
Toll-Free:1-888-744-4408
blasalle@semafo.com
Sofia St Laurent
Communications
514-744-4408
Toll-Free:1-888-744-4408
sstlaurent@semafo.com
