NEWS
ENDEAVOUR AND TERANGA COMBINE TO CREATE WEST AFRICAN GOLD GIANT
Endeavour Mining and Teranga Gold have agreed a merger deal worth US$1.86 billion that will create a global top 10 gold producer with plans to make a secondary listing on the London Stock Exchange. The TSX-listed miners had earlier confirmed talks were taking place on a potential merger, which would consolidate a collection of gold assets across West Africa, including producing mines and development projects. Despite an initial jittery response from investors, the tie-up will provide Endeavour shareholders with 66% of the combined entity, with Teranga’s receiving the remaining 34%.
Teranga will also get three seats on the board to Endeavour’s seven. Endeavour will pay a 5.1% premium for Teranga’s shares. “Teranga had a very strong run over the past 12 months, so we’re not trying to buy cheap – we’re just trying to make the right deal that satisfies both sets of shareholders,” said Endeavour CEO Sébastien de Montessus. The merged company will boast average annual gold production of more than 1.5 million ounces with production costs of around US$850 per ounce. The deal resembles Endeavour’s second major acquisition this year after it bought Semafo in March.
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