Photo by: Reuters
PERTH (miningweekly.com) – The shareholders of ASX- and TSX-listed Endeavour Mining have approved a partnership with gold investment company La Mancha Holding and Naguib Sawiris.
Endeavour in September entered into a strategic partnership with La Mancha which would see the gold miner acquire 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 would see La Mancha injecting $63-million in cash into SMI. The 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.
“We are very pleased with the strong support from our shareholders for this transaction with La Mancha and Naguib Sawiris and the endorsement of our growth strategy,” said Endeavour CEO Neil Woodyer.
“This partnership builds on our respective successes in Côte d’Ivoire to secure Endeavour’s platform for growth with the shared vision of creating a premier African gold producer.”
Endeavour’s shareholders also approved a one-for-ten share consolidation, which would become effective on the close of the La Mancha transaction, on November 12.