Endeavour Mining receives US$25.3 million
from the sale of its Youga Mine
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George Town,
February 29th, 2016 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF)
is pleased to announce that it has received US$25.3 million
upon simultaneously signing and closing the sale transaction of its
non-core Youga Mine to MNG Gold ("MNG").
The total cash consideration is
comprised of US$20 million for the asset and US$5.3 million for the
cash-on-hand. In addition, Endeavour has retained a 1.8% Net
Smelter Royalty ("NSR") on production realized beyond the current
reserve from the property sold, and with the inclusion of a buyback
provision.
Neil Woodyer, CEO
of Endeavour, stated: "This transaction provides upfront value for
Youga's remaining 2 year mine life and gives us greater financial
flexibility to pursue growth opportunities. 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."
About the Youga
Mine
The Youga Gold Mine is located
approximately 180 km southeast of Ouagadougou. Endeavour holds a
90% interest in Burkina Mining Company ("BMC") which has been
granted the rights to exploit the Youga Gold Deposit. The remaining
10% of BMC is held by the Government of Burkina Faso.
Youga is an open pit mining
operation with a 1mtpa gravity/CIL processing facility. It has
recovered a total of over 0.6 million ounces of gold since
operations commenced in 2008. Youga employs approximately 665
workers in total, including full time Endeavour employees and
contractors.
As at December 31, 2015, Measured
and Indicated mineral resources (inclusive of reserves) were 17.8
million tonnes at 1.4 g/t gold containing 0.8 million ounces and
the Proven and Probable mineral reserves were 2.5 million tonnes at
1.6 g/t gold containing 0.1 million ounces[1].
In 2015, Youga produced 68,407
ounces of gold. Production in 2016 is forecast to be 40,000 to
45,000 ounces at a mine-level AISC cost of $980 to $1,030 per
ounce.
About MNG
Gold
MNG Gold is a privately owned
Turkish gold exploration and development company focused on West
Africa and Turkey. MNG Gold own the high grade gold Balogo project,
located in proximity to the Youga mill, in Burkina Faso and the
Kokoya gold project in Liberia. MNG Gold has a broad capacity to
explore, develop and produce gold in Turkey and abroad. The Company
is owned and financed by Mr Mehmet Nazif Günal, a Turkish
entrepreneur.
Contact
Information
Vincent
Benoit
EVP - Strategy & Business
Development
+33 (0)1 70 38 36 96
vbenoit@endeavourmining.com
Martino De
Ciccio
VP - Strategy & Investor
Relations
+33 (0)1 70 38 36 95
mdeciccio@endeavourmining.com
Brunswick Group
LLP
Carole Cable, Partner
+44 7974 982 458
ccable@brunswickgroup.com
Qualified Persons
Adriaan "Attie"
Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a
Qualified Person under NI 43-101, and has reviewed and approved the
technical information related to mining operations in this news
release. Michael Alyoshin, MAusIMM CP Min,
Endeavour's Chief mining engineer, is a Qualified Person under NI
43-101, and has reviewed and approved the information ore depletion
information related to mining operations in this news release.
Gérard De Hert, EurGeol, Vice President
Exploration is the Qualified Person overseeing Endeavour's
exploration projects in West Africa and has reviewed and approved
the exploration and resource information in this news release
About Endeavour Mining Corporation
Endeavour Mining is a TSX-listed
intermediate gold mining company which operates 5 West African
mines in Côte d'Ivoire, Mali, Burkina Faso and Ghana. In 2016, it
expects to produce between 575,000 and 600,000 ounces at an all-in
sustaining cost of US$875 to US$925 per ounce. Endeavour Mining is
focused on effectively managing its existing assets to maximize
cash flow as well as pursuing organic and strategic growth
opportunities that benefit from its management and operational
expertise.
Endeavour Mining | Executive Office | Bureau 76, 7 Boulevard
des Moulins, Monaco 98000
This news release contains
"forward-looking statements" including but not limited to,
statements with respect to Endeavour's plans and operating
performance, the estimation of mineral reserves and resources, the
timing and amount of estimated future production, costs of future
production, future capital expenditures, and the success of
exploration activities. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"expects", "expected", "budgeted", "forecasts" and "anticipates".
Forward-looking statements, while based on management's best
estimates and assumptions, are subject to risks and uncertainties
that may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to the successful integration of
acquisitions; risks related to international operations; risks
related to general economic conditions and credit availability,
actual results of current exploration activities, unanticipated
reclamation expenses; changes in project parameters as plans
continue to be refined; fluctuations in prices of metals including
gold; fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, possible variations in ore
reserves, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes,
title disputes, claims and limitations on insurance coverage and
other risks of the mining industry; delays in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which Endeavour operates. Although Endeavour has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Please refer to Endeavour's
most recent Annual Information Form filed under its profile at
www.sedar.com for further information respecting the risks
affecting Endeavour and its business
[1] As
announced by Endeavour in its Feb 29th, 2016, press release
entitled "Endeavour Mining Increases P&P Reserves and M&I
Resources by 32% and 39%, respectively" available on the Company's
website.
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This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Endeavour Mining Corporation via
Globenewswire
HUG#1990238
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