Endeavour sells Agbaou gold mine for $80 million
(Kitco News) - Endeavour Mining (TSX:EDV) announced Friday that it has entered into an agreement to sell its 85% interest in its non-core Agbaou mine in Côte d’Ivoire to Allied Gold for a consideration of up to $80 million with further upside through its equity exposure and a net smelter return royalty.
Located approximately 200km north of the port city of Abidjan, Côte d'Ivoire, the Agbaou gold mine is an open pit mining operation with a CIL processing facility which is currently processing in excess of 2.0Mtpa. In the first nine months of 2020, the mine produced 76,713 ounces of gold at an AISC of $1,013/oz. Agbaou’s Measured and Indicated resources, inclusive of reserves, as at December 31, 2019, stood at 7.6MT at 2.14 g/t Au containing 519koz, while Proven and Probable reserves stood at 6.3MT at 1.58 g/t Au containing 321koz.
Based on known reserves, Agabou’s mine life is expected to cease by the end of 2022, but Allied intends to extend the life of mine through continued regional exploration activities in the near term. Endeavour owns an 85% stake in the Agbaou mine, with the remainder owned by the Government of Côte d'Ivoire (10%) and SODEMI (5%).
The transaction is expected to close on March 1, 2021.
President and CEO Sébastien de Montessus commented, “The sale of our interest in the Agbaou mine to Allied Gold is in line with our strategy of actively managing our portfolio to focus management efforts on high margin, long-life core assets."
Endeavour Mining is a multi-asset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Côte d’Ivoire, four mines (Houndé, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali and Guinea.