Endeavour Mining Corporation (TSE:EDV) (OTCQX:EDVMF) announced Friday that La Mancha had now completed its US$100 million investment into the West Africa-focused miner.
Endeavour issued a total of 4,507,720 shares to La Mancha for net proceeds of US$100 million as La Mancha exercised its anti-dilution right in support of Endeavour’s previously announced C$1 billion acquisition of SEMAFO.
La Mancha now holds around 24.1% of Endeavour’s shares, a reduction from its previous 31% interest but allowing for a larger free float and greater liquidity in the stock, according to a statement from Endeavour.
The offering was made at a price of C$30.27 per share, a 44% premium to the share price prior to the SEMAFO transaction announcement in March and a 7.5% discount to the five-day volume weighted average trading price. Endeavour’s shares have risen by more than 60% since announcing its intention to acquire SEMAFO.
The SEMAFO deal transforms Endeavour into the largest gold producer in West Africa and among the top 15 gold producers in the world, expected to produce over 1 million ounces of gold this year.
La Mancha will retain its anti-dilution right under its investor rights agreement with Endeavour, and may increase its stake by purchasing shares on-market, according to a release.
La Mancha is a privately held international gold company with interests in West Africa and Australia through its investments in Endeavour Mining, Evolution Mining and Golden Star Resources.
Shares of Endeavour lifted in Toronto on Friday morning 1.5% to stand at C$32.50.
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