Endeavour and Adamus merge to form new entity
Endeavour Mining and Adamus Resources have entered into a definitive merger implementation agreement to form a new West African gold producer.
The newly merged entity has a forecasted gold production of 172,000oz in 2011 from two mines, including the Youga gold mine in Burkina Faso and Nzema gold mine in Ghana.
Under the terms of the agreement, Adamus Resources' shareholders will receive 0.285 of an Endeavour Mining share for each Adamus share they hold.
The new entity will have an extensive exploration portfolio in highly prospective regions of Ghana, Burkina Faso, Côte d'Ivoire, Liberia and Mali totaling over 10,400km².
The merged entity will repay a $60m project loan for the Adamus Resources' Nzema project and invest $100m in the reduction of hedged gold volumes.
On completion of the deal, Endeavour Mining will hold 55% interest in the new entity and Adamus Resources will hold the remaining 45% interest.