26 Jan Endeavour to sell stake in Côte d’Ivoire mine to Allied Gold
Endeavour Mining will relinquish its 85% stake in the Agbaou gold mine in Côte d’Ivoire after agreeing a deal with private African operator Allied Gold worth up to C$80 million.
The open pit gold mine – deemed non-core by Endeavour – began commercial production in 2014 and yielded 76,713 ounces of gold in the first nine months of 2020.
Under the terms of the deal, Endeavour will receive $20 million in cash in the first quarter of the year, $40 million worth of shares in Allied Gold and a contingent payment of up to $20 million, made up of $5 million for each quarter of this year.
West Africa-focused Endeavour will also be entitled to a net smelter return (NSR) royalty on ounces produced in excess of the gold mine’s reserves estimated as of 31 December 2019.
Earlier this week, the gold firm announced record consolidated full-year production of 908,000 ounces for 2020 – a 39% increase on its annual production in 2019.
“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,” said Endeavour’s president and CEO Sébastien de Montessus.
He added that the transaction will lead to the creation of the Bonikro-Agbaou complex, with Agbaou located in close proximity to Allied’s Bonikro gold mine. The complex will potentially produce more than 285,000 ounces of gold per year through multiple open pits and two processing plants.