Endeavour Mining looks in Africa, Latin America for producing mines

Endeavour Mining looks in Africa, Latin America for producing mines 
TORONTO (miningweekly.com) – TSX-listed Endeavour Mining, which owns the Youga gold mine in Burkina Faso, is “actively pursuing” acquisitions, CEO Neil Woodyer said on Monday.

“We're now looking at a very active, dynamic market and we are pursuing a number of investment opportunities,” he said on a conference call.

The company is looking in Central and South America, as well as Africa, and is focused on operations that are already in production, he said.

The firm has carried out “a lot” of due diligence processes at mine sites, and continues to identify potential targets, Woodyer said.

"We have the team in place and we are very actively pursuing a number of investment opportunities.”

Endeavour (known as Endeavour Financial until a September 2010 name change) last year bought the 45% it did not own in Youga owner Estruscan Resources.

The firm also acquired a 43% stake in another West African gold miner, Crew Gold, but sold the investment to Crew's other big shareholder Severstal, after the Russian firm increased its holding in Crew above 50%.

The company is aware that assets in West Africa are now “quite well priced”, and is not limiting its search to the region, Woodyer said.

Endeavour has about $300-million available to fund acquisitions, including a $100-million acquisition debt facility, he said.

“And we could probably get more debt for the appropriate asset,” Woodyer added

Endeavour has an exclusive advisory services agreement with Frank Giustra's Fiore Financial, which is “assisting Endeavour with the implementation of its acquisition strategy”.


Endeavour said earlier on Monday that it earned $9,6-million in the six months ended December 31.

The company had a shorter fiscal reporting period after it switched its financial year-end from June 30 to match the calendar year.

Youga's gold production during the six months rose 15%, to 44 407 oz, compared with 28 356 oz in the same period of 2009.

Cash costs also improved, declining 17% year-on-year to $622/oz.

The company also owns the Agbaou gold project in the Cote d'Ivoire, where it is conducting a 20 000 m drilling programme ahead of updating a feasibility study on the project.

Endeavour shares rose 3,2% on Monday, to C$2,59 apiece by 15:59 in Toronto.
Edited by: Creamer Media Reporter