Endeavour Mining to Acquire True Gold for $61.5 Million
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Endeavour Mining has entered into a definitive arrangement agreement with True Gold Mining Inc. pursuant to which Endeavour Mining will acquire all of the issued and outstanding common shares of True Gold via a court-approved plan of arrangement. In conjunction with the acquisition, Endeavour Mining’s largest shareholder with 30 percent ownership, La Mancha Holding S.àr.l., intends to exercise an anti-dilution right that will result in an approximate CDN$82.6 million (US$61.5 million) new equity placement in Endeavour Mining.
“The production profile and low cost of True Gold’s Karma Mine is a very attractive fit with our West African operating portfolio. Karma is nearing production, and Endeavour Mining has both the financial strength and an experienced operations team to ensure Karma’s value is maximized during this important stage. While True Gold shareholders are receiving an attractive premium and an opportunity to participate in a larger diversified West African producer, Endeavour Mining shareholders are gaining a new, low-cost mine that boosts group production while reducing group AISC/oz in a value accretive transaction,” said Neil Woodyer, CEO of Endeavour Mining.
“In the long term, the Karma Mine has extensive exploration potential to extend its mine life. Endeavour Mining’s enhanced ability to finance an expanded exploration strategy at Karma, and at our own mines, is expected to generate significant value. With the expected closing of this acquisition in April 2016, we intend to see Karma complete its production ramp-up and then commence construction of the Houndé Project. This transaction also demonstrates the strength of Endeavour Mining’s strategic relationship with La Mancha and Naguib Sawiris as our long term partner with the shared vision of building a leading, Africa-focused gold producer,” added Woodyer.
About Endeavour Mining Corporation
Endeavour Mining is an intermediate gold mining company which operates four West African mines in Côte d’Ivoire, Mali, Burkina Faso and Ghana. In 2016, it expects to produce between 535,000 and 560,000 ounces at an all-in sustaining cost of US$870 to US$920 per ounce, after the sale of the Youga Mine and before the addition of the Karma Mine. Endeavour Mining is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.
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