viewEndeavour Mining Corp

Endeavour Mining to combine with SEMAFO to create leading West African-based gold miner

The deal brings together six mines with strong cash flow into one portfolio, the opportunity to optimize assets, and a growth pipeline

Endeavour Mining Corp -
The implied equity value for SEMAFO is C$1 billion based on Endeavour’s closing price on March 20 this year

Endeavour Mining Corporation (TSE:EDV) (OTCMKTS:EDVMF) has revealed it is to combine with SEMAFO Inc (TSE:SMF) in a C$1 billion deal which will create a leading West Africa-based gold producer generating over 1 million ounces a year.

The merger brings together six mines with strong cash flow into one portfolio, the opportunity to optimize assets, and a growth pipeline. Both company's boards have unanimously approved the transaction.

Under the deal, each SEMAFO shareholder will receive 0.1422 Endeavour shares, representing a premium of 27.2% based on the 20-day volume-weighted average price of both companies for the period to March 20 this year.

READ: Endeavour Mining says production and operations running smoothly in West Africa despite coronavirus outbreak

The implied equity value for SEMAFO of C$1 billion based on Endeavour’s closing price on March 20 this year. The deal is immediately accretive on all key financial metrics, Endeavour said in a statement.

"Together, we will create a leading West African gold company with production of more than 1 million ounces of gold annually, supported by a robust pipeline of development projects and a significantly enhanced exploration portfolio focused on the highly prospective Birimian Greenstone Belt," Sébastien de Montessus, Endeavour's CEO added.

"With both companies having recently completed build-out phases and mine ramp-ups, the combined business is well positioned for a sustained period of strong cash flows."

Michael Beckett, Endeavour's chairman added: "We will also continue to benefit from having La Mancha as a cornerstone shareholder, who will invest $100 million into to the combined entity and hold a 25%t interest on a pro forma basis."

Endeavour and SEMAFO have worked as industry partners and early last year began a dialogue to evaluate the merits of a combination but then it was not possible to agree terms. Earlier this year, talks began again.

Intermediate producer SEMAFO operates two mines - the Mana and Boungou mines in Burkina Faso. Endeavour operates four mines across Côte d’Ivoire (Agbaou and Ity) and Burkina Faso (Houndé, Karma).

Endeavour shares slipped around 13.5% in Toronto to C$18.70 each.

Contact the author at [email protected]

Quick facts: Endeavour Mining Corp

Price: 27.39 CAD

Market: TSX
Market Cap: $4.47 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Endeavour Mining Corp named herein, including the promotion by the Company of Endeavour Mining Corp in any Content on the Site, the Company...


Endeavour Mining's head of exploration and growth details his 2019 ambitions

Patrick Bouisset, executive vice president of exploration and growth at Endeavour Mining  Corporation (TSE:EDV), speaks to Proactive's Andrew Scott while in London. The miner has five operating mines in the Birimian greenstone belt - in the Ivory Coast, it has the Agbaou and Ity...

on 24/5/19

2 min read