Endeavour Mining plc has closed the sale of its 90% interest in its non-core Karma gold mine in Burkina Faso to Néré Mining for a total consideration of up to $25 million plus a 2.5% Net Smelter Return (NSR) royalty.
Under the terms of the agreement, the total consideration consists of the following:
- $10 million was received prior to closing, in the form of a reimbursement of historical shareholder loans.
- A deferred cash payment of $5 million to be paid 6 months after closing.
- A contingent payment of up to $10 million, payable 12 months after closing, based on a sliding scale, linked to the average spot gold price as follows:
- Less than $1700/oz – No payment.
- $1701 to $1950/oz – US$5 million payment.
- $1951 to $2049/oz – US$8 million payment.
- Greater than $2050/oz – US$10 million payment.
- A 2.5% NSR royalty on all ounces produced in excess of 160 000 oz of recovered gold from 1 January 2022.
The transaction has been closed, with an effective date of 10 March 2022.
Sébastien de Montessus, President and CEO of Endeavour, comments:
“The sale of our non-core Karma mine to Néré Mining is in line with our strategy of actively managing our portfolio to focus management efforts on high margin, long-life, and low all-in sustaining cost, core assets.
“A key consideration in the sale process, was the selection of a party that will maintain our trusted partnerships in Burkina Faso, by committing to operate the mine in the best interests of our employees and local stakeholders. We are very pleased to sell Karma to Néré Mining as we have confidence that they can leverage their experience and knowledge gained from their local investments to maximise Karma’s future prospects.
“We are very proud of what we have accomplished at Karma, in particular the growth and development of our local employees, who we wish to thank for their commitment, professionalism, and contribution to Endeavour’s success over the past several years.”
Read the article online at: https://www.globalminingreview.com/mining/15032022/endeavour-sells-burkina-faso-gold-mine-to-nere-mining/