EDV.t / Endeavour Mining, premier African Gold producer

[drbubb]

EDV.t / Endeavour Mining, premier African Gold producer

 

Endeavour Mining (EDV.t) :

... is merging with an African Gold miner controlled by an Egyptian billionaire Naguib Sawiris, who seems to be a "bright fellow".

And the idea is to create a substantial new African Gold Miner

 

The Sawriris family will have 30% of EDV (and 2 of 9 board seats), and the company gets 55% of the ITY Gold mine, and $63 Million in cash

EDV regards the merger as "accretive." The relationship is meant to be "long term", and Sawriris has agreed to a 2-year standstill agreement

 

No.shares : 413.14 mn + 177.06 mn (30%) = 590.2 mn x $0.63 = $ 372 million, prospective Market Cap

 

// in edit: charts are BEFORE 1:10 reverse split //

 

EDV.t ... 10-yrs : 5-yrs : vs-GDX / 3-years : vs-GDX : 6-mos : Last : C$0.63

 

6 months - versus GDX .... update : GDXJ-vs-GDX : SLW-vs-UGLD (3xGold)

 

Note the Non-confirmation - GDX is back down retesting the lows, but EDV is above them.

If/when gold stocks bounce back, EDV may be one of the super-charged stocks - same with SLW perhaps

 

Looking at the merger - at C$0.58, La Mancha is getting 177million shares, worth approx, US$78million,

after contributing US$63 Million cash and 55% of Ity - that's just $15 million of 55% of the Ity Mine in Cote D'Ivore,

and that values 100% at $27.3 million. EDV mgmt regards the transaction as "highly accretive.".

 

Gold------------- : Old EDV : 100%Ity : Combined : - 45% T : NetComb. :
Reserves, P&P-- : 3.930M : 0.870M : 4.800M :
Cost per Oz.----- : $ 00/oz : $ 09 / oz : $ 00 /oz :
Reserves, M&I--- : 6.900M : 1.600M : 8.500M :
Cost per Oz.------ : $ 00/oz : $ 17 / oz : $ 00 /oz :
Production, 2015 : 580.k oz : 80.k oz : 640.k oz :
==============

 

PRODUCTION:
Gold-------------- : Old EDV : 100% Ity : Combined : Impact of Ity
Production, 2014 : 466.k oz : 081.k oz : 547.k oz : + 17%
All-in. Sust. Cost- : $1010 -- : $921 /oz : $997 /oz : - 1 %
Revenues--------- : $584 Mn : $100 Mn : $684 Mn: +17%
Operating EBITDA $143 Mn : $036 Mn : $179 Mn: +25%
. . .
6 months, 2015 -- : 255.k oz : 045.k oz : 300.k oz : + 18%
All-in. Sust. Cost- : $ 922 -- : $696 /oz : $888 /oz : - 4 %
Revenues--------- : $ 307 Mn : $052 Mn : $359 Mn: +17%
Operating EBITDA: $ 098 Mn : $027 Mn : $125 Mn: +28%

In the future, Ity's upside will be mainly in a new type of production from CIL

Capital Costs / NPV */ (for the Ity mine)
Heap Leach : $32mn : US$ 18.2 Million, to the end of 2017
CIl projec--t- : $87mn : US$ 219. Million, of which $128.5 mn are direct costs
===
*AT $1,150/ oz.

[drbubb]

EDV has had a great run - from $4.35 to $13.02

 

and I sold mine this week at between $12-13, and I will be looking to buyback in later

 

EDV ... 2-years : 1-yr : 6-mos / 10-days

[drbubb]

NEWS RELEASE

-

TSX: EDV Endeavour Mining to acquire True Gold to grow its low-cost gold production George Town, March 4, 2016

Endeavour Mining is pleased to announce that La Mancha Holding S.àr.l., its largest shareholder with 30% ownership,

intends to exercise an anti-dilution right that will result in an approximate CDN$82.6 million (US$61.5million)

new equity placement in Endeavour Mining

> PDF : http://hugin.info/171882/R/1991975/733026.pdf

True Gold Mining (TSX: V.TGM, Forum) ... update

MARKET REACTION:
Endeavour Mining shares slid 11.97% to $11.33 per share and True Gold Mining shares jumped 21.52% to $0.48 per share.
OUR TAKE:
This transaction is part of the grand consolidation that is sweeping both mining and energy sectors as depressed commodity prices have left many companies at bargain levels. True Gold Mining was in the home stretch to produce at Karma which would have definitely brightened its financial prospects and as a result, shareholders would have probably seen a significant uptick in SP, especially if gold continues to rally throughout the coming year.
Ratios:

$11.33 x 0.044 = $0.4985 and
$ 0.48 / 0.044 = $ 10.909

Endeavour Mining (T.EDV) to snap up True Gold Mining (V.TGM)
Gaalen Engen, Stockhouse.com
> http://www.stockhous...CekTie4cyaGR.99

Endeavour Mining (TSX: EDV, Forum), an intermediate gold producer focused on West African gold mine assets, made a significant step to expand its portfolio when the company announced today that it had entered into a definitive arrangement agreement with True Gold Mining (TSX: V.TGM, Forum), a mid-tier gold producer hopeful developing the Karma Gold Mine, an open-pit heap leach gold mine in Burkina Faso, West Africa.

According to the news release, the all-share deal where Endeavour will acquire all issued and outstanding common shares of True Gold will garner 0.044 of an Endeavour Mining common share for every True Gold common share held at a rate of approximately $0.57 per share. The total share consideration is valued at approximately $226.0 million, representing a 43.4% premium for True Gold shareholders based on closing prices as of March 3, 2016 and a 32.7% premium based on 20-day VWAPs, on the TSX and TSX-V, respectively.

True Gold holds a 90% interest in the Karma Gold mine which is expected to have first gold pour in late March / early April 2016.

As a result of the transaction, Endeavour’s forecast gold production rate will increase by approximately 110,000 – 120,000 ounces per year with an estimated AISC of approximately US$700/oz in years 1 to 5, with a mine life of 8.5 years based on current reserves.

The deal will also bump Endeavour’s attributable Proven and Probable gold reserves by 19% to 5.4 million ounces. Measured and Indicated gold resources will increase 39% to 10.2 million ounces, and Inferred gold resources will grow by 123% to 3.9 million ounces.

Endeavor, in a separate but related transaction, will provide a US$15.0 million convertible bridge loan to True Gold to bolster True Gold’s books as it completes construction of the Karma Mine. The loan is also meant to be a financing alternative to the current US$120.0 million gold streaming facility with Franco-Nevada Corporation and Sandstorm Gold, of which True Gold has already drawn $105.0 million.

La Mancha Holdings will exercise its anti-dilution rights and maintain its current 30% ownership by committing to purchase 7.5 million new Endeavour Mining shares at a price of $10.94 per share after the True Gold acquisition is completed. As a result of this, True Gold shareholders will control 20.9% of Endeavour Mining common shares after the acquisition dust settles.

Neil Woodyer, Endeavour Mining CEO, commented on the deal, “The production profile and low cost of True Gold's Karma Mine is a very attractive fit with our West African operating portfolio. Karma is nearing production, and Endeavour Mining has both the financial strength and an experienced operations team to ensure Karma's value is maximized during this important stage.”

He went to explain, “While True Gold shareholders are receiving an attractive premium and an opportunity to participate in a larger diversified West African producer, Endeavour Mining shareholders are gaining a new, low-cost mine that boosts group production while reducing group AISC/oz in a value accretive transaction. In the long term, the Karma Mine has extensive exploration potential to extend its mine life. Endeavour Mining's enhanced ability to finance an expanded exploration strategy at Karma, and at our own mines, is expected to generate significant value.”

Then he added, “With the expected closing of this acquisition in April 2016, we intend to see Karma complete its production ramp-up and then commence construction of the Houndé Project.”
==
more at http://www.stockhouse.com/news/newswire/2016/03/04/endeavour-mining-t-edv-to-snap-up-true-gold-mining-v-tgm#XQsxCekTie4cyaGR.99

[drbubb]

Endeavour Mining completes acquisition of True Gold

Mining Review

- ‎20 hours ago‎

Following the transaction close, Endeavour Mining's issued and outstanding shares totalled approximately 84.3 million and its market capitalization amounted to approximately C$1.3 billion, based on Endeavour's last closing price on the Toronto Stock ...

[drbubb]

Could stall here, below $20 ... update

.