AGMDC is a wholly-owned indirect subsidiary of SEMAFO, and owns an 80% interest in Societe des Mines du Liptako (SML), owner of the Samira Hill gold mine in Niger.
The purchase price includes a $1.25m in cash and a fixed net smelter return royalty of 1.2% on gold sold from the Samira Hill plant payable to SEMAFO by Middle Island Resources.
The transaction is subject to required governmental and regulatory approvals, as well as completion of certain other conditions, and is expected to close in 30 September 2013.
