Semafo Inc. struck a definitive deal to acquire Savary Gold Corp., which holds around a 75.2% stake in the Karankasso gold project joint venture in Burkina Faso.

Semafo currently owns about a 15.5% interest in Savary and holds warrants that can be exercised to take its interest to 16.48%.

Savary shares will be exchanged on the basis of 0.0336 of a Semafo share for each Savary share held. As part of the agreement, Semafo will issue around 7.26 million shares to Savary shareholders, while Savary will merge with a newly incorporated Semafo unit.

Savary's management, board and significant shareholders are supportive of the proposed merger, according to a March 11 release.

Savary will delist from the TSX Venture Exchange upon deal completion, expected by the end of April.

The transaction will create a district-scale land package of 1,250 square kilometers, with proven exploration and development potential.