TSX-listed Endeavour Mining has completed the sale of its interest in the non-core Tabakoto mine to Algom Resources.
Algom Resources is a subsidiary of BCM International.
As part of the transaction, Endeavour will retain its greenfield exploration tenements located over 20 km north of the Tabakoto processing plant, on trend with Randgold’s Loulo mine.
These relate to a portion of the Kofi tenement and the Netekoto tenement.
Following further discussions, Endeavour and BCM agreed to amend the Tabakoto sale terms.
The total sale price consideration has been increased to up to approximately US$70 million compared to the previously disclosed US$60 million upfront cash consideration.
The total consideration is now composed of an upfront cash consideration of US$35 million, which was received today, a deferred cash consideration of US$10 million in 2019, subject to certain conditions, and a 10% net smelter royalty on the Dar Salaam deposit, capped at a maximum of 200,000 ounces of gold.
Algom Resources is a West African mining development company based in Sierra Leone.
The Tabakoto Gold Mine is located approximately 360 km west of Bamako in southwestern Mali, near the Senegal border.
Endeavour’s current ownership ranges from 80% to 90% depending on the pits, with the remainder owned by the government of Mali.
Tabakoto is an open pit and underground mining operation with a 1.4 Mtpa gravity/CIL processing facility.
In 2017, Tabakoto produced 144 Koz of gold at an AISC of $1,148/oz.
Tabakoto produced 86 Koz at an AISC of $1,335/oz for the first nine months of 2018.