MONTREAL, QUEBEC--(Marketwired - Oct. 1, 2013) - SEMAFO Inc. (SMF.TO)(SMF.ST) today announced that the Corporation's heads of agreement with Middle Island Resources Limited (MDI.AX) for the sale of a 100% interest in African GeoMin Mining Development Corporation Limited ("AGMDC") has expired. AGMDC, a wholly-owned indirect subsidiary of SEMAFO Inc., holds an 80% interest in Société des Mines du Liptako (SML) S.A. ("SML"), owner of the Samira Hill gold mine in Niger. The Government of Niger owns the remaining 20% interest in SML.
Closing of the transaction was subject to the fulfillment of several conditions prior to September 30, 2013. A number of said conditions were not fulfilled, including those pertaining to approvals and consents from the Government of Niger. As announced on August 26, 2013, the Samira Hill mine has been placed in care and maintenance.
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates two gold mines: the Mana Mine in Burkina Faso and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner through the responsible development of its high potential Mana property. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.