Endeavour Mining has entered into an agreement to sell its 85% interest in its non-core Agbaou mine in Cote d’Ivoire to Allied Gold Corp for a consideration of up to $80 million with further upside through its equity exposure and a Net Smelter Return royalty.
Agbaou has been a highly cash generative asset which facilitated the organic development of Hounde and Ity, and given that it has now become non-core to Endeavour, we firmly believe that this transaction is in the best interests of all of Agbaou’s stakeholders, including the Government of Cote d’Ivoire, local communities and the employees themselves. This transaction will ensure mining activities can continue for many years to come through the creation of the Bonikro-Agbaou complex.
Allied Gold Corp is a privately owned, Africa-focused gold company. Once the Allied Gold pending transactions close, they will own three producing assets (Agbaou and Bonikro in Cote d’Ivoire and Sadiola mine in Mali) and a strong project development pipeline (Sadiola Sulphide project in Mali and Dish Mountain in Ethiopia). The company also holds exploration acreage of 600km2 in El Sid, Egypt.
Allied Gold acquired the Bonikro mine in 2019. Bonikro’s Measured and Indicated resources, inclusive of reserves, as at December 31, 2019, stood at 25.5MT at 1.66 g/t Au containing 1.4Moz.