leadf
logo-loader
viewEndeavour Mining Corp

Endeavour confirms that it is in talks with Teranga Gold regarding a potential merger of equals

A transaction would only be pursued if its board believed that it represented a "compelling value creation opportunity"

Endeavour Mining Corp - Endeavour Mining confirms that it is in discussions with Teranga regarding a potential merger of equals
Reuters first reported that Endeavour, which is 24.12% owned by Egypt’s Sawiris family, has been on the “acquisition trail this year” as gold prices gained on the back of global stimulus

Endeavour Mining Corporation (TSE:EDV) (OTCQX:EDVMF) (FRA:E5Y1), an ambitious gold producer focused on West Africa, confirmed that it is in discussions with Canada-based Teranga Gold Corp (TSE:TGZ) (OTCMKTS:TGCDF) (FRA:0TGA) regarding a potential merger of equals. 

Reuters reported on Tuesday that a merger, if it proceeds, would mark the latest in a series of deals involving the gold-rich region. The news agency said that Endeavour, which is 24.12% owned by Egypt’s Sawiris family, has been on the “acquisition trail this year” as gold prices gained on the back of global stimulus. 

“Endeavour confirms that it is in discussions with Teranga regarding a potential merger of equals style combination,” the company said in a statement.

READ: Endeavour Mining eyes top-end output from Boungou mine in Burkina Faso after infrastructure improvements

“These discussions may or may not result in an agreement in respect of a potential transaction. Any transaction would only be pursued if the Board of Endeavour believed that it represented a compelling value creation opportunity,” it added.

In the meantime, Teranga Gold has also acknowledged that it is in discussions with Endeavour regarding a potential “merger of equals structured transaction.”

Teranga Gold is focused on strengthening its position as a low-cost, mid-tier gold producer in West Africa. Teranga’s strategy is to maximize shareholder value by increasing long-term free cash flow through diversification and growth while remaining fiscally conservative.

Further consolidation in West Africa brings with it the possibility of economies of scale which could help miners manage increasing security costs, especially in the Sahel.

Endeavour Mining is headquartered in the Cayman Islands. The firm, which has 2,800 employees worldwide, has 14 million ounces of measured and indicated resources (M&I) and aims to have discovered 10 to 15 million ounces of the precious metal within five years.

Endeavour operates four producing mines across Côte d’Ivoire (Agbaou and Ity) and Burkina Faso (Houndé, Karma).

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

Quick facts: Endeavour Mining Corp

Price: 23.87 CAD

TSX:EDV
Market: TSX
Market Cap: $5.81 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Endeavour Mining Corp named herein, including the promotion by the Company of Endeavour Mining Corp in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Endeavour Mining ramps up exploration efforts with Houndé mine in Africa

Endeavour Mining (TSE: EDV) CFO Vincent Benoit tells Proactive Investors the gold producer has recently made two new discoveries at the company's Kari Pump asset at the Houndé mine in Burkina Faso, Africa. Benoit says the company has successfully extended the Kari Pump high-grade...

on 06/08/2018

2 min read