As previously announced on 9 August 2017, Endeavour Mining Corporation (Endeavour) has agreed the sale of its 90% stake in the non-core Nzema gold mine to BCM International (BCM) for a total cash consideration of up to US$65 million.
Endeavour received a payment of US$38.5 million upon closing, corresponding to the first two payments less adjustments.
Additional deferred payments of up to US$25 million are expected to be received over the course of 2018 and 2019, based upon reaching certain agreed upon milestones related to mine free cash flow generation.
President and CEO of Endeavour Mining previously commented: “The sale of Nzema gold mine fits into our stated strategic objective of actively managing our asset portfolio to improve its overall quality.”
“The sale also enables us to further streamline our efforts on long-life low-cost operations, with two in Mali, two in Burkina Faso and two in Ivory Coast.
“BCM has extensive experience in Ghana, where it is headquartered, and we believe it has the right set of skills and capabilities to take Nzema beyond its current three-year mine life, for the benefit of all its stakeholders including employees, the government of Ghana, and local communities,” he said.
About Nzema gold mine
The Nzema gold mine is located approximately 70 km from Takoradi in the south-west of Ghana.
Endeavour holds a 90% interest in the mine, the remaining 10% is held by the Ghanaian government.
Nzema is an open pit gold mining operation with a 1.6 mtpa gravity/CIL processing facility.
It commenced production in 2011 and currently employs approximately 800 workers, including full time Endeavour employees and contractors.
In 2016, Nzema produced 87.710 ounces of gold at an AISC of $1.167/oz.
Nzema produced 53.334 ounces at an All-in Sustaining Cost (AISC) of $967/oz for the first half of 2017 and is on track to meet its full year 2017 guidance of 100 000 to 110 000 ounces at an AISC of $895-940/oz, with AISC expected to decline in the second half of 2017 due to the grade profile continuing to improve.
Feature image credit: Endeavour Mining Corporation