May 6, 2010 / 4:01 PM / 8 years ago

UPDATE 1-Semafo buys mining fleet for Niger mine; shares up

* Sees oper cost cut by $70 an ounce

* Shares up as much as 7 pct

May 6 (Reuters) - Canadian gold miner Semafo Inc (SMF.TO) said it bought a new mining fleet for its Samira Hill mine in Niger that is expected to cut mining cost by 30 percent, sending its shares up as much as 7 percent.

Semafo said it will invest $19 million in the equipment, which is expected to cut cash operating cost by $70 an ounce. The payback period is expected to be about three and a half years.

Additionally, Samira Hill will benefit from substantial cost savings associated with civil works previously outsourced, the company said in a statement.

Semafo shares, which rose 57 percent in the last six months, were up 43 Canadian cents at C$6.44 Thursday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Don Sebastian)

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