Canada’s Endeavour Mining sold the Youga gold mine to MNG Gold for $25.3 million. The total cash consideration consists of $20 million for the asset and $5.3 million for the cash-on-hand. In addition, Endeavour has retained a 1.8% net smelter royalty (NSR) on production realized beyond the current reserve from the property sold and a buyback provision.
“This transaction provides upfront value for Youga’s remaining two-year mine life and gives us greater financial flexibility to pursue growth opportunities,” said Neil Woodyer, CEO, Endeavour. “Since MNG’s nearby Balogo high-grade deposit will give a second life to the Youga operation, we firmly believe that this transaction is in the best interest of all stakeholders, including our employees, the government, and the local population.”
Located approximately 180 km southeast of Ouagadougou, the capital of Burkina Faso, the Youga gold mine is an open-pit mining operation with a 1-million-metric-ton-per-year (mt/y) gravity/CIL processing facility. It has recovered a total of more than 600,000 ounces (oz) of gold since operations commenced in 2008. Youga employs approximately 665 workers in total, including full-time Endeavour employees and contractors.
At the end of 2015, measured and indicated mineral resources (inclusive of reserves) were 17.8 million mt at 1.4 g/t gold containing 800,000 oz, and proven and probable mineral reserves were 2.5 million mt at 1.6 g/t gold containing 100,000 oz.
MNG Gold is a privately owned Turkish gold exploration and development company focused on West Africa and Turkey. MNG Gold owns the high-grade gold Balogo project, located in proximity to the Youga mill, in Burkina Faso and the Kokoya gold project in Liberia. MNG Gold has a broad capacity to explore, develop and produce gold in Turkey and abroad. The company is owned and financed by Mehmet Nazif Günal, a Turkish entrepreneur.