HomeGoldEndeavour completes US$200 million investment

Endeavour completes US$200 million investment

Endeavour Mining Corporation has announced the successful completion of the previously announced La Mancha Holding S.à.r.l. investment.

Endeavour issued a total of 8,910,592 ordinary shares to La Mancha for aggregate net proceeds of US$200 million at a price of approximately US$22.45 per Share.

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The investment, which was announced as part of the acquisition of Teranga Gold Corporation on November 16, 2020, is being made by La Mancha under its pre-existing anti-dilution right.

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As previously disclosed, upon completion of the investment, La Mancha’s future anti-dilution rights have now been extinguished. Following completion of the investment, Endeavour now has 252,519,830 shares outstanding with La Mancha holding an interest of approximately 19%.

The investment is considered to be a “related party transaction” for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

Endeavour is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, respectively, in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the investment is not more than 25% of Endeavour’s market capitalization.

In accordance with TSX policies, the investment was subject to Endeavour shareholder approval, which was obtained on January 21, 2021. Endeavour intends to use the proceeds of the investment for debt reduction and general corporate purposes.

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