JOHANNESBURG (miningweekly.com)– TSX-listed True Gold has achieved first production at its Karma gold mine in Burkina Faso mine, the miner said on Monday.
“We are delighted to pass this key milestone at the Karma mine and are now focused on the ramp-up period [aimed at] achieving commercial production,” said True Gold CEO Christian Milau.
Meanwhile, independent advisory firms Institutional Shareholder Services (ISS) and Glass Lewis had recommended that True Gold shareholders accept Endeavour Mining’s offer to acquire all of the company’s issued and outstanding common shares.
Endeavour Mining last month moved to acquire the company for its 90% interest in Burkina Faso’s Karma project, in an all-scrip deal valued at about C$191-million.
The ISS recommendation stated that the all-stock transaction made strategic sense, as it would create a stronger combined entity with better access to financial markets and it would result in potential operational and administrative synergies.
Glass Lewis also stated that the proposed transaction appeared strategically and financially reasonable from the perspective of True Gold and its shareholders.
When Endeavour first made the offer, both companies’ boards had unanimously approved the agreement, together with all of True Gold’s directors and the company’s main shareholders (15.7%). Endeavour directors, who held 31.5% of Endeavour, had done the same.