Endeavour Mining Corp. recently sold its Youga Gold Mine in central Burkina Faso to MNG for $25.3 million.
Endeavour executives described the sale as a way to streamline the company's portfolio while providing value to others in the mining industry.
"This transaction provides upfront value for Youga's remaining two year mine life and gives us greater financial flexibility to pursue growth opportunities," Endeavour CEO Neil Woodyer said. "It is in line with our strategic objective of actively managing our portfolio to improve its overall quality. Since MNG's nearby Balogo high-grade deposit will give a second life to the Youga operation, we firmly believe that this transaction is in the best interest of all stakeholders, including our employees, the government, and the local population."
The Youga mine is approximately 112 miles southeast of the city of Ouagadougou. At the end of 2015, the mine showed reserves of 17.8 million tons. Since opening operations in 2008, the mine has gathered 600,000 ounces of gold. Forecasts for 2016 estimate production of 40,000 to 45,000 ounces.
MNG is a Turkish mining company that owns the Balongo project and the Kokoya mining operation in Liberia.
Endeavour Mining Corp is a Vancouver-based mining company that owns five mines in Côte d’Ivoire, Mali, Ghana and Burkina Faso.