Canadian miner Endeavour Mining will sell its 85% interest in the Agbaou mine, in Côte d’Ivoire, to private African operator Allied Gold, which owns the nearby Bonikro mine.
When the transaction closes, the Bonikro-Agbaou operation will comprise multiple openpits, and two processing plants with a total milling capacity of over five-million tons a year, producing a potential 285 000 oz/y.
Endeavour will sell its interest in Agbaou for up to $80-million with further upside through its equity exposure and a net smelter royalty.
“Agbaou has been a highly cash generative asset which facilitated the organic development of Houndé and Ity, and given that it has now become noncore to Endeavour, we firmly believe that this transaction is in the best interests of all of Agbaou’s stakeholders, including the government of Cote d’Ivoire, local communities and the employees themselves,” commented Endeavour president and CEO Sébastien de Montessus.
In the first nine months of 2020, the Agbaou mine produced 76 713 oz of gold at an all-in sustaining cost of $1 013/oz.
Agbaou has measured and indicated resources, inclusive of reserves, of 7.6-million tonnes at 2.14 g/t containing 519 000 oz.
Based on known reserves, Agabou’s mine life is expected to cease by the end of 2022, but Allied intends to extend the life-of-mine through continued regional exploration activities in the near term.
Endeavour’s carrying book value at September 30, for its interest in the Agbaou mine stood at $103-million and is expected to be below $90-million at year-end.
Endeavour owns an 85% stake in the Agbaou mine, with the remainder owned by the government of Côte d'Ivoire (10%) and SODEMI (5%).