Endeavour, La Mancha enter strategic partnership
JOHANNESBURG (miningweekly.com) – TSX- and ASX-listed Endeavour Mining has entered into a long-term strategic partnership with privately held gold investment company La Mancha Holding.
Endeavour would acquire Sawiris family-controlled La Mancha’s indirect 55% interest in Société des Mines d’Ity (SMI), which operates the Ity gold mine in Côte d’Ivoire, through the issue of 177.1-million Endeavour ordinary shares, representing 30% of Endeavour’s enlarged share capital and equal to $77.9-million.
The deal, which remained subject to conditions and shareholder approval, would see La Mancha injecting $63-million in cash into SMI.
The $63-million capital injection would reduce Endeavour's net debt to $159-million and improve the company’s ability to fund its Houndé project, in Burkina Faso.
“This transaction will immediately add to Endeavour’s operating cash flow and increase our attributable mineral reserve and resource base by 22% and 23%, respectively, while also strengthening our balance sheet and funding position to pursue further growth,” CEO Neil Woodyer said.
La Mancha had also expressed an in-principle commitment to invest up to $75-million in additional funds to support Endeavour's growth.
La Mancha CEO Sebastien de Montessus would relinquish his current position to join Endeavour as president, where he would be groomed to take over as CEO within 24 months, when Woodyer assumed the role of Endeavour executive chairperson.
La Mancha chairperson Naguib Sawiris was also nominated to Endeavour’s board.
Endeavour also announced plans to delist from the ASX on the back of the low volume of trading.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation