07 Mar Endeavour Mining acquire True Gold
Endeavour Mining (TSX:EDV) has announced a deal to acquire True Gold Mining (TSX-V:TGM) worth about C$240 million in stocks.
The Canadian miner will take control of True Gold’s low-cost gold mine in Burkina Faso which is on the verge of pouring its first gold.
Endeavour will pay 0.044 of its share for each True Gold share. The offer values True Gold at about $0.57 per share, a premium of 43 per cent at the stock’s close on Thursday.
Neil Woodyer, CEO of Endeavour Mining, stated: “The production profile and low cost of True Gold’s Karma Mine is a very attractive fit with our West African operating portfolio. Karma is nearing production, and Endeavour Mining has both the financial strength and an experienced operations team to ensure Karma’s value is maximized during this important stage.”
Endeavour said taking control of the Burkina Faso project would increase its gold production by about 110,000 to 120,000 ounces a year in the first five years.