Canadian-based Endeavour Mining has signed an agreement to acquire True Gold Mining in a transaction valued at C$191m ($143m).

Through the acquisition, Endeavour will get access to True Gold’s Karma gold mine in Burkina Faso.

Karma is 90% owned by True Gold and nearing production start-up, and first gold pour is expected in late March or early April 2016.

The mine will also become an asset within Endeavour’s existing portfolio of four operating mines, along with its fully permitted Houndé project.

The acquisition is set to increase Endeavour’s forecast gold production rate by about 110,000oz to 120,000oz per year, at a low AISC of about $700/oz in years one to five.

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True Gold has already secured $105m of its $120m gold streaming facility from Franco-Nevada and Sandstorm Gold.

"In the long run, the Karma Mine has extensive exploration potential to extend its mine life."

Endeavour Mining CEO Neil Woodyer said: "Karma is nearing production, and Endeavour Mining has both the financial strength and an experienced operations team to ensure Karma’s value is maximised during this important stage.

"In the long run, the Karma Mine has extensive exploration potential to extend its mine life."

The acquisition is expected to close in April 2016 and following this, Endeavour will integrate Karma into its existing operations management structures.

Endeavour said that its largest shareholder La Mancha has elected to exercise its pre-emptive right to maintain its 30% interest, contributing additional cash funding of about C$82.6m ($61.5m) in support of the combined company’s future growth.

Image: Mining free dig ore at Endeavour’s Agbaou gold mine in Côte d’Ivoire. Photo: courtesy of Endeavour Mining.