Following the completion of the transaction Endeavour Mining will have approximately 107 million ordinary shares issued, with former Avnel shareholders holding approximately 6.6% of Endeavour Mining’s pro forma share capital.
The next steps at the Kalana gold project
Following the close of the transaction, Endeavour Mining expects to quickly integrate Avnel and initiate pre-development activities to optimise the Kalana project, including:
- Ceasing the current small-scale operations and clearing the underground workings and existing infrastructure to allow for the development of future open pits, as well as grant access to exploration
- Resuming exploration activities on both the Kalana deposit and nearby targets including Kalanako, with the initial campaign expected to run until the end of 2018
- Launching a revised feasibility study
The revised feasibility study will investigate options as to the:
- Increasing of the current plant design capacity to lift the average annual production and shorten the mine life based on current reserves
- Integrating the exploration results from the upcoming drilling campaign
- Leveraging Endeavour Mining’s construction expertise and integrating operating synergies
- Updating the environmental impact assessment to incorporate the revised feasibility study results
- Creating dedicated Kalana project community relations and HSE teams to validate the census and stakeholder mapping, with the aim of defining a resettlement action plan ahead of commencing relocation activities.
Endeavour Mining has also refinanced its previous revolving credit facility (RCF) on improved terms and up-sized it to $500 million from $350 million, thereby providing significant headroom to fund its growth projects.
“We are delighted to increase and extend the RCF on significantly improved terms with strong endorsements from our existing bank group, and the addition of three new lenders to our syndicate who are global leaders in mining finance,” says Endeavour Mining president and CEO, Sébastien de Montessus.
“Our ability to fund our growth projects is further strengthened with this up-sized RCF which complements our existing cash position, future cash flow generation from our operating mines as well as the expected proceeds from the Nzema mine sale.
“With project payback periods of less than two years at both Hounde and Ity, we expect to quickly repay any drawn portion of the RCF while preserving our flexibility to fund future projects,” concludes de Montessus.
Feature image credit: Wikimedia