Niger is considering making a bid for Semafo's 80% stake in the Samira Hill mine, said Sopamin on Monday. Sopamin is the West African nation's mining assets management company. Semafo had suspended mine operations in the Samira Hill site.
Earlier on Monday, Semafo announced that it had advised authorities in Niger regarding the suspension. Niger owns the remaining 20% of the venture and had initiated procedures with employees and labor unions regarding termination. In a statement on the Sahel nation's state radio late on Monday, Sopamin had expressed its interest in buying Semafo's 80% stake. Sopamin also said that it was aware it would be competing with Middle Island Resources, adding that it would make a final decision on the acquisition by September 10.
Semafo entered negotiations with Australia's Middle Island Resources for the sale of its 80% stake for a purchase price of USD1.25 million in cash and a fixed net smelter return royalty of 1.2% on gold sold from the mine. The deal was expected to be concluded by end of September.
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