Endeavour Mining recently acquired True Gold Mining Inc. (“True Gold”) and the gold mine it owns in Burkina Faso.
In the agreement, Endeavour takes over all issued and outstanding common shares of True Gold through a court-approved plan of arrangement. True Gold owned a 90 percent share of the Karma gold mine in Burkina Faso.
And with this mine nearing production start-up, it will be added to Endeavour’s arsenal, increasing its forecast gold production rate by approximately 110,000 to 120,000 ounces per year.
"The production profile and low cost of True Gold's Karma Mine is a very attractive fit with our West African operating portfolio,” Neil Woodyer, CEO of Endeavour Mining, said. “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.”
Woodyer believes that Endeavour shareholders have gained a new low-cost mine that boosts gross production. He notes that the Karma Mine has significant exploration potential as well.
“With the expected closing of this acquisition in April 2016, we intend to see Karma complete its production ramp-up and then commence construction of the Houndé Project,” Woodyer said. “This transaction also demonstrates the strength of Endeavour Mining's strategic relationship with La Mancha and Naguib Sawiris as our long term partner with the shared vision of building a leading, Africa-focused gold producer."
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