Semafo, Prospex plan merger

An agreement-in-principle sets the stage for a merger between Prospex Mining (PRM-V) and Semafo (SMF-T).

The proposed deal calls for Prospex to merge with a wholly owned subsidiary of Semafo and become a wholly owned subsidiary of that Montreal-based junior. Shareholders would receive one Semafo share for every 10 Prospex shares. Once the transaction is completed, Prospex shareholders would receive 3.2 million of Semafo’s 36 million outstanding shares.

Both companies are active in West Africa. Semafo holds about $22 million in cash and investments, plus 21 properties in Burkina Faso, Guinea, Ghana and Ivory Coast. Two of these are at the feasibility stage.

Prospex holds ground in Guinea, Ghana and Mali.