BURKINA FASO – SEMAFO INC. of Toronto has raised over $25.6 million in a bought deal, and most of the money is earmarked for its Mana gold mine development in this tiny African nation.
Semafo is purchasing a fleet of KOMATSU open pit production equipment in anticipation of having its own employees do the mining, rather than hiring a mining contractor. The cost of building a 100,000-oz/year project is estimated at $48.5 million, and the average cash operating cost over the life of the mine would be US$254/oz of gold. The Mana property is estimated to contain 9.44 million tonnes of ore at an average grade of 2.89 g/t Au.
Some of the money being raised is earmarked for capital expenditures at Semafo’s Samira Hill gold mine in Niger. The company’s news releases are available at www.Semafo.com.