TORONTO (miningweekly.com) – Endeavour will use the net proceeds of a freshly closed C$143.75-million bought deal financing to accelerate its grassroots exploration efforts at its West African assets.

The TSX-listed company saw further organic growth opportunities by significantly expanding the current exploration programmes in a long-term strategic West-African exploration initiative that leveraged Endeavour's high-quality portfolio.

Proceeds would also fund the potential development of the Côte d'Ivoire-based Ity carbon-in-leach gold process plant, and for general corporate purposes. The proceeds will also assist in maintaining a healthy balance sheet over the near term with a sound liquidity position while implementing this organic growth strategy, the company advised.

Regarding the financing, Endeavour issued 7.18-million ordinary shares at C$20 each, which included the underwriters exercising the overallotment option in full, for total gross proceeds of C$143.75-million.

BMO Capital Markets led a syndicate of underwriters, including Canaccord Genuity, Clarus Securities, Haywood Securities, Raymond James, RBC Dominion Securities and Scotia Capital. As part of the offering, Endeavour’s largest shareholder, Egyptian billionaire Naguib Sawiris's La Mancha Holding, which owns 30% of Endeavour, purchased one-million shares, on the same terms and conditions, for C$20-million. 

For 2016, the company expected consolidated output of between 535 000 oz and 560 000 oz, but it would update guidance for 2016 with the release of its second-quarter results.

Meanwhile, late Monday afternoon, Endeavour reported that a fatal accident had occurred at its Tabakoto mine, in Mali.

The company advised that an employee fell into a slot raise while working in the underground mine on Friday, and passed away in a Bamako hospital on Saturday evening. Endeavour said local authorities in Mali had been notified and an investigation had been launched. The company said it was cooperating fully with authorities and was also conducting its own investigation to determine the root cause of the accident.