Sub-Sahara Mining & Industrial Journal

Endeavour Mining, SEMAFO merger proposal vote set down for May 28

A SHAREHOLDER vote regarding the proposed merger between Endeavour Mining and SEMAFO is to take place on May 28 after the two companies filed a joint management information circular last week.

In addition, the proposed transaction received the support of the Québec Superior Court. The shareholder meetings will be digital owing to COVID-19 restrictions.

The all-share merger with SEMAFO, a Toronto-listed firm operating in West Africa’s Burkina Faso, was announced last month and will see Endeavour shareholders own about 70% of the combined company with SEMAFO shareholders controlling the balance.

Endeavour’s 31% shareholder, La Mancha, which is controlled by the Egyptian telecoms mogul, Naguib Sawiris, had promised to invest $100m into the combined company in order to maintain a 25% stake, down from the 31% he owns in Endeavour currently. Some 31.8% of Endeavour’s shareholders including management, supported the proposal. The transaction requires a two-thirds majority support of SEMAFO shareholders.

If approved by shareholders of Endeavour and SEMAFO – the transaction is earmarked for a second quarter conclusion – the combined company will have one million ounces a year in gold production, although current pro forma output is closer to 800,000 oz. At one million oz/year, the combined company will become one of the 15 largest gold producers globally.

The heart of the merged company would consist of four mines: Endeavour’s Ity and Houndé in Côte d’Ivoire and Burkina Faso respectively, and the Boungou and Mana mines from SEMAFO, both in Burkina Faso.

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