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Endeavour Mining (TSX:EDV) has announced that it has closed the bought deal financing previously announced on June 13, 2016.
The Company issued a total of 7,187,500 ordinary shares in the capital of Endeavour at a price of C$20.00 per Share, which includes the exercise of the underwriters’ over-allotment option in full, for aggregate gross proceeds of C$143.75 million.
The net proceeds of the Offering are intended to be used to accelerate Endeavour's organic growth potential by significantly expanding the current exploration programs in a long-term strategic exploration initiative leveraging Endeavour's high-quality West-African exploration portfolio, for the potential development of the Ity carbon-in-leach gold process plant and for general corporate purposes.
The proceeds will also assist in maintaining a healthy balance sheet over the near term with a sound liquidity position while implementing this organic growth strategy.
The Offering was completed by a syndicate of underwriters led by BMO Capital Markets and including Canaccord Genuity, Clarus Securities, Haywood Securities, Raymond James, RBC Dominion Securities and Scotia Capital.
The Shares were offered by way of a short form prospectus in all of the provinces of Canada, excluding Quebec and also offered by way of private placement in the United States and distributed internationally, as permitted.
As part of the Offering, La Mancha Holding S.àr.l. purchased 1,000,000 Shares, on the same terms and conditions, for $20 million.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record.
Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Côte d’Ivoire (Agbaou and Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema).
In 2016, it expects to produce between 535koz and 560koz at an AISC of US$870 to US$920/oz, excluding Karma which is in the commissioning stage.
Endeavour is currently building its Houndé project in Burkina Faso, which is expected to commence production in Q4-2017 and to become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over an initial 10-year mine life based on reserves. The development of the Houndé project is expected to lift Endeavour’s group production 900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to 10 years.
