TORONTO (miningweekly.com) – The shareholders of Canadian gold producers Endeavour Mining and True Gold on Thursday approved the proposed merger of the companies, paving the way for the creation of a new West Africa-focused intermediate gold producer, with a portfolio of low-cost producing assets spread across Côte d’Ivoire, Mali, Burkina Faso and Ghana.
Endeavour had early in March moved to acquire True Gold for its 90% interest in Burkina Faso's Karma project, in an all-scrip deal valued at about C$191-million.
Endeavour would now issue up to 18.95-million new shares to shareholders of True Gold, according to a plan of arrangement.
"We look forward to closing the True Gold transaction next week and expect then swiftly to integrate the Karma mine into our portfolio. Following the first gold pour last week, the operational ramp-up is progressing well and commercial production is scheduled to begin in June. We expect to communicate our updated production guidance for 2016, inclusive of Karma, with our second quarter results,” Endeavour CEO Neil Woodyer stated on Thursday.
The closing, and effective date of the arrangement was expected to occur on Tuesday.