Endeavour Mining confirms ‘merger of equals’ talks with Teranga Gold

Endeavour Mining is currently in ‘merger of equals’ discussions with fellow West Africa-focused miner Teranga Gold, a move that would create a dominant gold producer in the region.

TSX-listed Endeavour responded to recent media speculation with an announcement today that confirmed talks were ongoing with Teranga, also listed on the TSX, regarding the deal.

“These discussions may or may not result in an agreement in respect of a potential transaction and any transaction would only be pursued if the board of Endeavour believed that it represented a compelling value creation opportunity for its shareholders,” the statement read.

Endeavour added that it does not intend to comment further unless required to by applicable securities laws.

A successful tie-up between the two parties would create a C$7.45 billion company, based on Endeavour’s $5.25 billion market capitalisation and Teranga’s $2.2 billion market value.

Endeavour’s portfolio contains two gold mines in Côte d’Ivoire and four in Burkina Faso, plus four development projects across West Africa. Meanwhile, Teranga operates two producing mines in Senegal and Burkina Faso and is developing the Golden Hill project in Burkina Faso.