LA Mancha Resource Capital, a private investment firm, has sold a 3.5% stake in West African gold miner Endeavour Mining for about $437m.
The fund said on Friday it had sold 8.5 million Endeavour ordinary shares in a ‘bought deal’ at a price of C$71.25 per share (C$605m or US$437m). This price represents a 6.6% discount to the intraday volume weighted average price for Endeavour shares, and a 1.7% discount to the five-day VWAP.
A bought deal typically involves selling shares to an investment bank which then markets the securities to investors. Shares in Endeavour Mining are 190% higher over the last 12 months amid a 68% improvement in the dollar gold price.
La Mancha is a founding shareholder in Endeavour Mining. It took an initial 30% stake in the business in 2015 prior to it embarking on an aggressive acquisition strategy. At the time, Endeavour produced about 580,000 ounces a year compared to current guidance for the 2025 financial year of 1.1 to 1.2 million oz.
The fund said today it intended to retain a strategic stake in Endeavour of above 10%.
Vincent Benoit, CEO and Managing Partner of La Mancha said the sale “does not reflect any change in our conviction” in Endeavour. “Together with board representation, and continue to fully support Endeavour’s strategy and management team,” he added. La Mancha currently hold about 11.1% of the firm’s shares.
Naguib Sawiris, the Egyptian telecomms mogul who latterly became a gold bull, would remain on Endeavour’s board.
