La Mancha's $100m investment in Endeavour completed

6th July 2020 By: Schalk Burger - Creamer Media Senior Deputy Editor

TSX-listed gold producer Endeavour has issued 4.51-million shares to La Mancha in exchange for $100-million.

The transaction came about as La Mancha chose to exercise its antidilution rights following Endeavour's merger with fellow West Africa-focused miner Semafo.

Endeavour and Semafo in March announced a C$1-billion merger to create the largest West African gold mining company, with six operations and an attractive growth pipeline. The merger was concluded last week.

Following the issue of shares to La Mancha, Endeavour now has 163-million shares in issue, with La Mancha holding about a 24.1% interest in Endeavour.

La Mancha retains its antidilution right under its investor rights agreement with Endeavour, and may also elect to increase its stake by buying shares on-market, subject to regulatory limits.