Endeavour Mining to offload its interest in Ghana’s Nzema mine
Endeavour Mining has signed an agreement to sell its 90% interest in the non-core Nzema gold mine in Ghana to BCM International for $65m.
Endeavour's production rate for this year is expected to decrease to roughly 500,000oz-530,000oz from the initial guidance of 600,000 - 640,000oz following completion of the sale.
The Nzema mine is located approximately 70km from Takoradi in the south-west of Ghana. It is currently 90% owned by Endeavour, with the remaining interest held by the Ghanaian Government.
Endeavour Mining president and CEO Sebastien de Montessus said: "The sale of Nzema fits into our stated strategic objective of actively managing our asset portfolio to improve its overall quality.
“The sale also enables us to further streamline our efforts on long-life low-cost operations, with two in Mali, two in Burkina Faso and two in Ivory Coast.”
Nzema is an open pit mining operation equipped with a 1.6 metric tonnes per annum (mtpa) gravity / CIL processing facility. The site is expected to have a lifespan of three years.
The company produced 87,710oz of gold at Nzema last year, while production for the first quarter of this year stood at 53,334oz.
The full-year production guidance for the mine was marked at around 100,000oz-110,000oz.
BCM will offer $20m to Endeavour at the time of the deal's closing, while the remaining $45m is expected to be paid through 2019.
The total sum is based on the reaching of certain milestones related to mine-free cash-flow generation.
The transaction is subject to the receipt of approval from the Ghanaian Government, and completion is currently expected towards the end of next month.