TSX-listed West African gold miners Endeavour Mining Corporation and Teranga Gold Corporation confirmed on 10 November that they were in discussion regarding a potential merger.
The ‘merger of equals’ style combination may or may not result in an agreement in respect of a potential transaction and any transaction would only be pursued if the board of Endeavour believed that it represented a compelling value creation opportunity for its shareholders, the company said in a statement Endeavour.
Despite discussion, Teranga said that it remains focused on the development of its strong growth pipeline of assets, as it strengthens its position as a low-cost, mid-tier gold producer in West Africa.
In March this year, Endeavour Mining acquired Semafo to become Burkina Faso’s biggest gold producer, one of the top 15 gold producers globally and the largest in West Africa.
A deal with Teranga, if completed, would add another operating mine – Wahgnion – to Endeavour’s four existing mines in Burkina Faso, namely, Boungou (acquired from SEMAFO); Karma; Mana; and Hounde and will also give it exposure to Senegal.