Endeavour Mining Corporation (TSX: EDV) (OTCQX: EDVMF) ("Endeavour") and SEMAFO Inc. (TSX: SMF) (OMX: SMF) ("SEMAFO") announced that they have entered into a definitive agreement whereby Endeavour will acquire all of the issued and outstanding securities of SEMAFO by way of a Plan of Arrangement under the Business Corporations Act. The Transaction will create a top 15 global gold producer and the largest in West Africa with six operations and an attractive growth pipeline.
Due to the strong strategic rationale for local consolidation, both sets of Board of Directors have unanimously approved the Transaction.
- Creates top 15 global gold producer with +1 million ounces of gold production per year
- Creates a leading West African gold producer with six operations and an attractive growth pipeline
- Strengthens strategic positioning and enhances ability to manage risk
- Offers ability to deliver significant synergies at corporate, country and asset level
- Enhances capital market profile with greater ability to fund growth
- Exchange ratio of 0.1422x represents a 27.2% premium to the 20-day VWAP for SEMAFO and is accretive on all metrics to Endeavour
- Combined management team leverages the strong skillsets of both companies
- La Mancha strongly supports the transaction and commits to inject $100 million in the combined entity
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