TORONTO (miningweekly.com) – TSX-listed Semafo will sell shares to raise C$40,5-million in a bought-deal offering, to fund exploration and plant expansion at its new Mana gold mine, in Burkina Faso.

A syndicate of underwriters led by Thomas Weisel Partners Canada will buy 17,85-million Semafo shares, and sell them to the public at C$2,27 apiece.

Semafo has also given the underwriters an overallotment option to buy another 2,7-million shares, which would increase the gross proceeds to C$46,6-million if exercised in full.

The offering is expected to close on or about June 23, 2009.

Semafo produced 195 400 oz of gold last year. The firm operates three gold mines in West Africa: Kiniero in Guinea, Samira Hill in Niger and Mana in Burkina Faso.

Shares in the company declined 8,7% on Tuesday, to C$2,31 a share by 11:03 in Toronto.

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