Endeavour Mining Concluded Sale of Non-Core Mine in Burkina Faso

SEATTLE (Scrap Monster): Endeavour Mining plc announced that it has closed the sale of its non-core Karma mine in Burkina Faso. The company’s 90% interest in the mine was sold to Nere Mining for a total consideration of up to $25 million in addition to a 2.5% net smelter return royalty. The transaction came to a close effective 10^th March, 2022.

Under the terms of the agreement, the total consideration comprises $10 million received prior to closing, a deferred cash payment of $5 million which will be paid 6 months upon closing and a contingent payment of up to $10 million, payable 12 months after closing, based on a scale linked to prevailing gold prices. Also, a 2.5% royalty will be applicable on all ounces produced in excess of 160koz of recovered gold with effect from 1^st January, 2022, said the company press release.

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Further to the sale, the company has decreased its 2022 production guidance for continuing operations to 1,315-1,400 koz, while the all-in sustaining cost (AISC) guidance has been lowered to $880-$930 per ounce.

Sébastien de Montessus, President and CEO of Endeavour thanked the local employees for their commitment, professionalism and contribution to Endeavour’s success over the past several years. The sale of the mine is in line with its strategy of actively managing its portfolio of core assets, he added.