Endeavour Mining (TSX:EDV) (OTCQX: EDVMF) is pleased to announce that it has entered into an agreement to sell its 85% interest in its non-core Agbaou mine in Côte d’Ivoire to Allied Gold Corp for a consideration of up to $80 million with further upside through its equity exposure and a Net Smelter Return royalty.
Sébastien de Montessus, President and CEO of Endeavour, commented: “The sale of our interest in the Agbaou mine to Allied Gold is in line with our strategy of actively managing our portfolio to focus management efforts on high margin, long-life core assets.
Agbaou has been a highly cash generative asset which facilitated the organic development of Houndé and Ity, and given that it has now become non-core to Endeavour, we firmly believe that this transaction is in the best interests of all of Agbaou’s stakeholders, including the Government of Cote d’Ivoire, local communities and the employees themselves. This transaction will ensure mining activities can continue for many years to come through the creation of the Bonikro-Agbaou complex.
We are very proud of what we have accomplished at Agbaou as we have installed a strong and capable team, which is now led by an Ivorian General Manager, supported by a number of local employees in leadership positions, ensuring we leave behind a strong legacy. I want to thank our Agbaou employees for their huge commitment, professionalism and contribution to Endeavour’s evolution over the past years.”
Allied Gold is a private African operator which notably owns the nearby Bonikro mine. Following the transaction close, the Bonikro-Agbaou operation will be comprised of multiple open pits, two processing plants with a total milling capacity of over 5Mtpa, and will have the potential to produce over 285,000 ounces annually. Endeavour expects to capture the benefits of local synergies and exploration upside through its equity stake in Allied Gold and its NSR royalty.
Under the terms of the Agreement, the total consideration consists of:
The transaction is expected to close on March 1, 2021.
ABOUT ALLIED GOLD
Allied Gold Corp is a privately owned, Africa-focused gold company. Once the Allied Gold pending transactions close, they will own three producing assets (Agbaou and Bonikro in Cote d’Ivoire and Sadiola mine in Mali) and a strong project development pipeline (Sadiola Sulphide project in Mali and Dish Mountain in Ethiopia). The company also holds exploration acreage of 600km2 in El Sid, Egypt.
Allied Gold acquired the Bonikro mine in 2019. Bonikro’s Measured and Indicated resources, inclusive of reserves, as at December 31, 2019, stood at 25.5MT at 1.66 g/t Au containing 1.4Moz.
Located approximately 200km north of the port city of Abidjan, Côte d’Ivoire, the Agbaou Gold Mine is an open pit mining operation with a CIL processing facility which is currently processing in excess of 2.0Mtpa. In the first nine months of 2020, the mine produced 76,713 ounces of gold at an AISC of $1,013/oz. Agbaou’s Measured and Indicated resources, inclusive of reserves, as at December 31, 2019, stood at 7.6MT at 2.14 g/t Au containing 519koz, while Proven and Probable reserves stood at 6.3MT at 1.58 g/t Au containing 321koz. Based on known reserves, Agabou’s mine life is expected to cease by the end of 2022, but Allied intends to extend the life of mine through continued regional exploration activities in the near term. Endeavour’s carrying book value as at September 30, 2020, for its interest in the Agbaou mine stood at $103 million and is expected to be below $90 million at year-end. Endeavour owns an 85% stake in the Agbaou mine, with the remainder owned by the Government of Côte d’Ivoire (10%) and SODEMI (5%).
Endeavour Mining is a multi-asset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Côte d’Ivoire, four mines (Houndé, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.
As a leading gold producer, Endeavour Mining is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the Toronto Stock Exchange, under the symbol EDV.
Clinton Bennett, Endeavour’s VP Metallurgy and Process Improvement – a Fellow of the Australasian Institute of Mining and Metallurgy, is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and has reviewed and approved the technical information in this news release.
EnviroLeach Technologies Inc. (CSE: ETI) (OTCQB: EVLLF) (7N2: FSE... READ MORE
Montero Mining and Exploration Ltd. (TSX-V: MON) has completed a ... READ MORE
Rover Metals Corp. (TSX-V: ROVR) (OTCQB: ROVMF) further to its r... READ MORE
Silver Mountain Mines Inc. (TSX-V:SMM) announces that it has comp... READ MORE
enCore Energy Corp. (TSX-V: EU) (OTCQB: ENCUF) is pleased to ann... READ MORE