January 29, 2018 / TheNewswire / Savary Gold Corp. (TSX-V: SCA) announces that it has arranged a $2 Million investment into the Company by way of a non-brokered private placement with SEMAFO Inc. by issuing 33,333,333 common shares at a price of $0.06 per common share. Upon closing the placement, SEMAFO will own 15.5% of Savary's issued and outstanding shares on a non-diluted basis. The proceeds of the investment will be used to advance the Karankasso Project in Burkina Faso including drilling and technical studies.
"We welcome SEMAFO as another long-term strategic investor that will compliment Ross Beaty and our explorations efforts in developing a significant gold resource at Karankasso," stated Don Dudek, CEO for Savary. "SEMAFO is one of the most significant and respected mining operators in country with projects that are adjacent to Karankasso. We look forward to their input and support as we both develop projects in the area."
Benoit Desormeaux, President and CEO of SEMAFO commented, "Our investment highlights the potential of Savary's prospects and the quality of their team. We look forward to their continued success at Karankasso and will be pleased to assist in their efforts as required."
The closing of the private placement of common shares is subject to a number of conditions, including without limitation, the finalization and receipt of definitive subscription documentation and receipt of all regulatory approvals, including approval of the TSX Venture Exchange. The common shares will be subject to a four-month hold period in accordance with applicable Canadian securities laws. Upon closing of the private placement and subject to certain conditions, SEMAFO will have the right to appoint a director to Savary's board of directors.
About Savary Gold
Savary is a Canadian exploration company focused on exploring and developing the Karankasso Gold Project in Burkina Faso. The Company holds a 69.5% joint venture ownership and is the operator of the project with Sarama Resources Limited. The Project is located within the Hounde Greenstone Belt, which hosts Semafo's Mana mine, Roxgold's Yaramoko Mine and Endeavor's Hounde Mine. The Project contains an Inferred mineral resource estimate of 12.3 million tonnes (Mt) grading 2.03 g/t gold for
805,000 ounces. For additional information please visit our website at www.savarygold.com.
Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
