Endeavour Mining Enters Strategic Partnership with La Mancha

Endeavour Mining Corp. (TSX:EDV,OTCQX:EDVMF,ASX:EVR) announced that it’s entered into a long-term strategic partnership with privately held gold investment company La Mancha Holding Sarl. La Mancha is controlled by the Sawiris family.
As quoted in the press release:

As part of the transaction, Endeavour will acquire La Mancha’s indirect 55% interest in Société des Mines d’Ity S.A. (“SMI”), which operates the Ity Gold Mine in Côte d’Ivoire, plus various regional exploration properties, and La Mancha will contribute US$63 million cash¹ into the acquired businesses. La Mancha has also expressed an in-principle commitment to invest up to US$75 million in additional funds to support Endeavour’s growth. Upon completion of the transaction, La Mancha will be issued approximately 177.1 million Endeavour ordinary shares representing 30.0% of the enlarged share capital. On a pro forma basis, Endeavour will have an annual gold production rate of 580,000 ounces from five operations across West Africa, a strengthened balance sheet and further growth opportunities in Africa. Among other conditions, this transaction is subject to approval from Endeavour’s current shareholders.
¹ The US$63 million cash investment by La Mancha is inclusive of an expected US$25 million of attributable cash held in SMI (representing 55% of an anticipated US$45 million cash balance at closing), with the balance being invested into the La Mancha subsidiary being sold to Endeavour.

Neil Woodyer, CEO of Endeavour, commented:

We are pleased to welcome La Mancha and Naguib Sawiris as our long term strategic partner with the shared vision of building a leading, Africa-focused gold producer. This transaction will immediately add to Endeavour’s operating cash flow, 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.

Click here to read the full Endeavour Mining Corp. (TSX:EDV,OTCQX:EDVMF,ASX:EVR) press release.