SEMAFO and Savary jointly announced that they have signed a definitive combination agreement according to which SEMAFO will acquire all of the issued and outstanding common shares of Savary not already owned by it.
SEMAFO said that the transaction is carried out by way of a three-cornered amalgamation where Savary shareholders can vote on the amalgamation at a special meeting of Savary shareholders and the transaction is expected to be closed by the end of April 2019.
Under the terms of the combination agreement, Savary shareholders are expected to receive 0.0336 of a SEMAFO common share for each Savary Share and the exchange ratio for the transaction remains same as announced on 11 February 2019.
SEMAFO said that Savary management, board and significant shareholders, representing 29.3% of the Savary Shares, are supporting the deal and have entered into support agreements with SEMAFO to vote their Savary shares in favour of the Amalgamation.
SEMAFO president and CEO Benoit Desormeaux said: “Our acquisition of the Karankasso property reflects our core strategy of creating long-term value through developing and operating high quality assets.
“The acquisition provides a consolidated district-scale land package in a country we know well and on the prolific Houndé Greenstone Belt, which we also know very well. We see excellent potential for resource growth on the combined 1,250 km², and when this transaction is consummated we anticipate the combined property will head up our development pipeline.”
The company said that the ore mined from the entire consolidated land package could be trucked to a central plant, and economic trucking distance lies around ~25km depending on grade and recovery.
The district-scale land package is located on the prospective of Houndé Greenstone Belt that hosts Mana and many other operating mines.
Savary President and CEO Don Dudek said: “Over the past few years, Savary has delivered on its commitment to create value for its shareholders through its disciplined approach to exploration and resource development.
“The transaction with SEMAFO is consistent with that commitment as our shareholders will benefit from having ownership in an intermediate, multi-mine producer with a portfolio of high-quality assets and a proven and experienced management team that shares our commitment to creating long-term sustainable value. On closing, our shareholders can maintain exposure to the district-scale land package as it becomes one of SEMAFO’s top development pipeline projects.”