Dec 23 2005 |
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Morocco's Managem Sells 40% Stake in Gold Miner Semafo for $53 Million
Beirut (APD) - Morocco-based mining company Managem sold a stake of 40% in gold mining company Semafo to Georesources Exploration, a company incorporated in the British Virgin Islands, for $53.4 million, Semafo said Thursday.Semafo is an exploration and mining firm with operations in three West African countries, which is listed on the Toronto Stock Exchange. In parallel to the partial divestment by Managem, Semafo announced that it completed a private placement of common shares, raising gross proceeds of $65.2 million.
In a statement from late November, Semafo had said that it would use the proceeds from the private placement to accelerate its working capital and exploration program and to retire indebtedness that had been guaranteed by Managem.
In announcing the sale of the shares held by Managem, Semafo stated that four of its directors resigned in conjunction with the transaction and that the resultant vacancies on its board were likely to be filled within 45 days.
According to analysts, Managem is pursuing expansion of its operations in Africa and the Middle East. Both companies also stand to benefit from strong prices for gold and other metals.
In 2004, Managem incurred MAD 42.5 million in operating losses, compared to MAD 103 million profits in 2003.
The mineral industry is Morocco's largest foreign exchange earning sector and accounts for 35% of foreign trade and about 6% of Morocco's GDP. Morocco's minerals industry is dominated by phosphate mining, where it is the world's third largest producer, after the US and China.
Semafo focuses on exploring, developing and mining gold deposits in West Africa countries of Guinea, Niger and Burkina Faso. In the past, the company was also active in Ghana. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2005
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