PERTH (miningweekly.com) – West Africa-focused miner Endeavour Mining will sell its 90% stake in the Nzema gold mine, in Ghana, to private contract miner BCM International for $65-million.
CEO Sebastien de Montessus said on Wednesday that the sale enabled Endeavour to sharpen its focus on its long-life low-cost operations, with two in Mali, two in Burkina Faso and two in Cote d’Ivoire.
“BCM has extensive experience in Ghana, where it is headquartered, and we believe it has the right set of skills and capabilities to take Nzema beyond its current three-year mine life, for the benefit of all its stakeholders, including employees, the government of Ghana, and local communities,” De Montessus said.
BCM will pay Endeavour $20-million upon closing of the transaction, with an additional $45-million in deferred payments to be made over the remaining current mine life to 2019, based upon reaching certain agreed upon milestones related to mine free cash flow generation.
The transaction is expected to close at the end of September, following approval from the Ghana government.
Following the sale of the Nzema mine, Endeavour is expected to lower its 2017 production from between 600 000 oz and 640 000 oz, to between 500 000 oz and 530 000 oz.
Nzema produced 87 710 oz of gold in 2016 and its full-year guidance was 100 000 oz to 110 000 oz.