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ENDEAVOUR ANNOUNCES THE SALE OF ITS NON-CORE TABAKOTO MINE

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ENDEAVOUR ANNOUNCES THE SALE OF ITS NON-CORE TABAKOTO MINE

 

 

 

 

 

Endeavour Mining (TSX:EDV) (OTCQX: EDVMF) is pleased to announce that it has entered into a binding sale agreement for its interest in the non-core Tabakoto mine to Algom Resources Limited a subsidiary of BCM Investments Ltd, for a total cash consideration of US$60 million. The consideration is payable upon closing of the transaction which is expected to occur during the fourth quarter of 2018.

 

 

Sébastien de Montessus, President & CEO of Endeavour Mining, stated: “We are pleased to continue to pursue our portfolio management strategy through the sale of our non-core Tabakoto mine. This will increase our overall portfolio quality and allow management to focus on high cash generating assets with low AISC and long mine lives. Tabakoto has been sold following a comprehensive review which determined that the capital investments required to reduce its AISC did not meet our capital allocation criteria.

 

We believe this transaction will benefit Tabakoto’s stakeholders, including employees, the government of Mali, and local communities as BCM Investments is a longstanding partner with the right set of skills, expertise, and investment capabilities to maximise Tabakoto’s operational performance. We are confident that Algom will ensure a smooth transition and will continue to develop the mine, as was demonstrated with their previous Nzema acquisition last year.”   

 

 

Peter Spivey, Chief Operation Officer of Algom, stated: “We are very pleased for the opportunity to enter into this arrangement with Endeavour. The Tabakoto mine has been well established as both an open pit as well as underground mining operation for a number of years and we recognize it has excellent geological potential to continue operating well into the future. The underground operations at Segala and Tabakoto are well understood, and we look forward to working closely with our business partners in making improvements to the efficiency and operating costs of the operations. Algom will also make significant investment as required in further drilling to secure the pipeline of open pit as well as underground ore resource targets that have been well identified by Endeavour.”

 

 

ABOUT ALGOM RESOURCES LIMITED

 

 

Algom Resources is a West African mining development company based in Sierra Leone. Algom Resources Limited is a wholly owned entity of BCM Investments, which previously acquired Endeavour’s Nzema mine in 2017.

 

 

ABOUT TABAKOTO

 

 

The Tabakoto Gold Mine is located approximately 360 km west of Bamako in southwestern Mali, near the Senegal border. Endeavour’s current ownership ranges from 80% to 90% depending on the pits, with the remainder owned by the government of Mali.

 

 

Tabakoto is an open pit and underground mining operation with a 1.4mtpa gravity/CIL processing facility. In 2017, Tabakoto produced 144koz of gold at an AISC of $1,148/oz. Tabakoto produced 53koz at an AISC of $1,298/oz for the first half of 2018.

 

 

ADVISORS

 

 

Endeavour’s financial adviser is BMO Capital Markets and its legal adviser is Linklaters LLP. BCM Investments Ltd’s legal adviser is Baker & Mc Kenzie.

 

ABOUT ENDEAVOUR MINING CORPORATION

 

 

Endeavour Mining is a TSX listed intermediate African gold producer with a solid track record of operational excellence, project development and exploration in the highly prospective Birimian greenstone belt in West Africa. Endeavour is focused on offering both near-term and long-term growth opportunities with its project pipeline and its exploration strategy, while generating immediate cash flow from its operations.

 

 

Endeavour operates 5 mines across Côte d’Ivoire (Agbaou and Ity), Burkina Faso (Houndé, Karma), and Mali (Tabakoto) which are expected to produce 670-720koz in 2018 at an AISC of $840-890/oz. Endeavour’s high-quality development projects (recently commissioned Houndé, Ity CIL and Kalana) have the combined potential to deliver an additional 600koz per year at an AISC well below $700/oz between 2018 and 2020. In addition, its exploration program aims to discover 10-15Moz of gold between 2017 and 2021 which represents more than twice the reserve depletion during the period.

 

Posted September 4, 2018

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