True Gold Mining Inc. and Endeavour Mining Corporation are coming together. The two British Columbia-based mining companies have announced that they have entered an agreement to merge, with Endeavour Mining acquiring all shares of True Gold Mining.
This strategic transaction will help True Gold mining meet its goal of becoming an intermediate gold producer. The financial flexibility and support of Endeavour Mining and its shareholders will allow the company to fully develop and bring to production its Burkina Faso-based Karma mine, which will be an important asset in Endeavour Mining’s portfolio.
“I am very proud of what our team has accomplished at True Gold,” stated Mark O’Dea, Executive Chairman of True Gold. “In just over three years we have taken Karma from an unpermitted and unfunded conceptual project to a fully constructed mine, nearing production start.”
As O’Dea explained, the transaction creates myriad benefits for shareholders as the company grows under Endeavour’s support. “Our long term goal for the Company has been to grow the business into a significant and highly profitable producer,” he said. “This transaction with Endeavour accomplishes that goal, giving our shareholders meaningful ongoing exposure to Karma as it moves into production, as well as exposure to Endeavour’s exceptional portfolio of producing mines and development projects. We are excited to become shareholders in what we consider to be the premier intermediate gold producer in West Africa.”
“This transaction offers a very meaningful share position in a proven and growing intermediate gold producer at an attractive premium,” added Christian Milau, President & CEO of True Gold. “We are excited by the near-term growth profile and future exploration prospects of the combined company. The platform provides our shareholders with immediate exposure to production and an accelerated development strategy with a broader and more diversified asset base.”