Canadian gold miner Endeavour Mining is to take over TSX-listed explorer Avnel in an all-share transaction which values Avnel at US$122m in order to acquire Avnel’s 80% stake in the Kalana Gold project in Mali.
According to Endeavour CEO Sebastien de Montessus, “ Kalana fits well within our strategy of building a high quality portfolio of long-life, low AISC (all-in sustaining costs) assets with exploration upside. This acquisition expands our footprint in Mali and re-inforces our project pipeline.”
De Montessus added that Endeavour would develop Kalana on completion of its Hounde and Ity CIL (carbon-in-leach) projects in West Africa which will push the group’s production to around 900,000oz of gold annually by 2019. Endeavour currently produces around 600,000oz/year of gold.
Kalana is expected to produce more than 150,000oz of gold annually at an AISC of below $850/oz and have a life-of-mine estimated at more than 10 years with “significant further exploration potential.”
Endeavour operates five mines spread across West Africa in Cote d’Ivoire, Burkino Faso, Mali and Ghana. In late 2016 Endeavour looked at a merger with Tanzanian gold producer Acacia Mining but called this off in March saying it could derive “adequate value” from initial discussions.
Acacia has subsequently run into major regulatory and tax problems with the Tanzanian government with the Tanzanian government blocking exports of gold-in-concentrate produced by two of Acacia’s three operating mines.
