Daily News: March 6, 2015

Macquarie Facility Supports SEMAFO’s Purchase

SEMAFO arranged a facility from Macquarie Bank. The offering was completed by a syndicate of underwriters led by Clarus Securities. and included BMO Capital Markets, CIBC World Markets, Paradigm Capital and Scotia Capital.

The facility will be used to fund the company’s acquisition of Orbis Gold. The facility has a three-year term and is repayable in three annual amounts of $30 million on the first, second and third anniversaries of closing.

The facility bears interest at LIBOR plus 6.5% and replaces the short-term Sprott facility (announced November 30, 2014), which has been cancelled.

The company issued, on a bought deal private placement basis, a total of 15,640,000 common shares at a price of C$3.70 per common share, which includes the exercise of the underwriters’ over-allotment option in full for aggregate gross proceeds of C$57,868,000 (the offering).

SEMAFO plans to use the net proceeds of the offering to partly fund the purchase of Orbis Gold, as well as for working capital and general corporate purposes.

All common shares issued pursuant to the offering will be subject to a statutory four-month hold period in accordance with Canadian securities legislation. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Canadian-based SEMAFO is a mining company with gold production and exploration activities in West Africa.