Endeavour Mining Corporation (TSX: EDV) (OTCQX: EDVMF) is pleased to announce the successful completion of the previously announced La Mancha Holding S.à.r.l.  investment.  

Endeavour issued a total of 4,507,720 ordinary shares in the capital of Endeavour to La Mancha for aggregate net proceeds of US$100 million (C$136 million) as La Mancha exercised its anti-dilution right in support of the SEMAFO acquisition. Following the investment, Endeavour now has 163,062,165 Shares outstanding with La Mancha holding an interest of approximately 24.1%. This marks a reduction from La Mancha’s previous 31% interest which provides for a larger free float and greater liquidity in the stock. La Mancha retains its antidilution right under its Investor Rights Agreement with Endeavour, and may also elect to increase its stake by purchasing shares on-market, subject to regulatory limits.

The Offering was made at a price of C$30.27 per Share which represents a 44% premium to the share price prior to the transaction announcement (TSX closing price on March 20, 2020) and a 7.5% discount to the 5-day volume weighted average trading price of the Shares on the TSX calculated immediately prior to the completion of the transaction.

The La Mancha investment is considered to be a “related party transaction” for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Endeavour is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, respectively, in reliance on sections 5.5(a) and 5.7(b) of MI 61-101, respectively, as the fair market value of the investment is not more than 25% of Endeavour’s market capitalization. In accordance with TSX policies, the La Mancha investment was subject to Endeavour shareholder approval, which was obtained on May 28, 2020. Endeavour intends to use the proceeds from the Offering for general corporate purposes. 

ABOUT ENDEAVOUR MINING

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.