Endeavour Mining and Semafo have entered into a definitive agreement whereby Endeavour will acquire all of the issued and outstanding securities of Semafo by way of a plan of arrangement under the Business Corporations Act (Québec). The combined company will have six gold mines in Cote d’Ivoire and Burkina Faso. Production from the mines in 2020 is forecast to exceed 1 million ounces (oz) of gold.
Endeavour will contribute four mines to the combined company — Houndé and Karma in Burkina Faso and Ity and Agbaou in Cote d’Ivoire. Semafo will contribute the Mana and Boungou mines in Burkina Faso.
Houndé is an open-pit operation, with production during 2020 forecast at 230,000 oz to 250,000 oz at all-in sustaining costs of $865 to $895/oz. Processing rate for the carbon-in-leach plant is 4.1 million metric tons per year (mt/y).
Ity is an open-pit operation, with production during 2020 also forecast at 230,000 oz to 250,000 oz at all-in sustaining costs of $630 to $675/oz. The recently expanded plant throughput capacity stands at 5 million mt/y.
Mana is a combined open-pit/underground operation, with production during 2020 forecast at 195,000 oz of gold at all-in sustaining costs of $1,085/oz.
Boungou is an open-pit operation, with production during 2020 forecast at 140,000 oz of gold at all-in sustaining costs of $703/oz. Processing capacity is 4,000 mt/d through a carbon-in-pulp plant.
Agbaou production during 2020 is forecast at 115,000 oz to 125,000 oz of gold at all-in sustaining costs of $940 to $990/oz. Processing capacity through a gravity/carbon-in-leach plant for oxides is as much as 2.6 million mt/y. Processing capacity for fresh ore is 1.6 million mt/y.
Karma is a heap leach operation with production during 2020 forecast at 100,000 oz to 110,000 oz at all-in sustaining costs of $980 to $1,050/oz. The heap leach processing rate stands at 4 million mt/y.
The combined company will have an attractive growth project pipeline, including the Fetekro, Kalana, Bantou, and Nabanga projects.
The combined company will have 10.5 million oz of gold in reserves and 20.7 million oz in measured and indicated resources, inclusive of reserves, plus 6.3 million oz of inferred resources.
Existing Endeavour and Semafo shareholders will own approximately 70% and 30%, respectively, of the combined company.
Endeavour President and CEO Sébastien de Montessus will continue as CEO of the combined entity. Semafo president and CEO Benoit Desormeaux will become President and will oversee operational performance.
Semafo’s Montreal office will become the primary support office to the operations.