Endeavour Mining announces partnership with La Mancha

Endeavour Mining Corp. announced Monday that it has entered into a long-term strategic partnership with La Mancha Holding, SARL, a privately held gold investment company controlled by the Sawiris family.

As part of the transaction, Endeavour will acquire La Mancha’s indirect 55 percent interest in Societe des Mines d’Ity, S.A., which operates the Ity Gold Mine in Ivory Coast, plus various regional exploration properties. La Mancha will contribute $63 million into the acquired businesses.

La Mancha might invest up to $75 million in additional funds to support Endeavour’s growth. Upon completion of the transaction, La Mancha will be issued approximately 177.1 million Endeavour ordinary shares representing 30 percent of the enlarged share capital. On a pro-forma basis, Endeavour will have an annual gold production rate of 580,000 ounces from five operations across West Africa, a strengthened balance sheet and further growth opportunities in Africa. Among other conditions, this transaction is subject to approval of Endeavour’s current shareholders.