http://www.marketwatch.com/story/se...lion-2015-03-12-71733124?reflink=MW_news_stmp
"Orbis Transaction
Highlight of the first quarter of 2015 is unquestionably our acquisition of ASX-listed Orbis Gold Limited, which comprises a strong portfolio of mining projects in Burkina Faso led by the advanced gold project of Natougou. With historical indicated resources of 7.1 million tonnes at 5.1 g/t Au for 1.2 million ounces, Natougou represents one of the highest grade open-pittable projects in West Africa. Nabanga, the second most-important project in Orbis' portfolio, contains very high grade historical inferred resources. The Orbis acquisition offers SEMAFO multiple benefits, including an additional 13 permits covering more than 3,000 square kilometers and one of the largest land packages in Burkina Faso. The Natougou and Nabanga gold projects enrich SEMAFO's mid-stage pipeline, offering a perfect strategic complement to its grassroots exploration properties and high-grade satellite deposits in production. As of March 11, 2015, the Corporation holds 98% of Orbis' outstanding shares, representing a purchase price of $134.9 million. The transaction will trigger additional disbursements of approximately $14.8 million including, among others, transaction costs incurred by the Corporation and Orbis' liabilities assumed by the Corporation.
In the first quarter of 2015, we obtained long-term debt of $90 million in order to fund the Orbis acquisition and closed a bought deal private placement for $46.5 million to partly fund the purchase of Orbis, as well as for working capital and general corporate purposes. The long-term debt replaces the short-term facility announced November 30, 2014, which has been cancelled.
The Corporation has established the following milestones with regard to the Natougou and Nabanga projects:
-- We intend to convert the JORC historical resources on the Natougou and
Nabanga gold projects to NI-43-101 compliant resources in the second
quarter of 2015.
-- A total budget of $2.5 million has been established for an infill and
exploration program on Natougou. Before the end of March, we will launch
the in-fill drilling campaign consisting of approximately 22,000 meters
of reverse-circulation "RC" drilling in order to convert Natougou's
historical inferred resources to indicated resources using a 40-meter by
40-meter grid spacing. At the same time, we will commence a 10,000 meter
RC drill program on Natougou's related structures, with the aim of
increasing resources in close proximity.
-- In the second half of the year, as part of the feasibility study, we
will initiate an in-fill drilling program on Natougou that is designed
to convert a portion of the indicated resources to the measured
category.
-- In addition, we plan to carry out a regional exploration program on the
Natougou advanced gold project with the objective of increasing the
resources base."
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STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
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