Business
Endeavour Mining and Teranga Gold Announce Combination to Create New Senior Gold Producer
HIGHLIGHTS: Creates a new top 10 senior gold producer with industry-leading low production costs and diversification across three countries Combines highly comp
About this update from Endeavour Mining Plc
[{"type":"text","content":"HIGHLIGHTS: Creates a new top 10 senior gold producer with industry-leading low production costs and diversification across three countries Combines highly complementary assets with potential for significant synergies Strong cash flows and healthy balance sheet to fund attractive dividends and growth, whilst building a strong net cash position in 2021 High potential for re-rating given potential best in class operating and financial metrics and attractive valuation compared to other senior gold producers Re-rating potential also underpinned by an enhanced capital markets profile with intention to seek a second listing on the London Stock Exchange as a Premium issuer targeting FTSE 100 entry Exchange ratio of 0.470x represents a premium of 5.1% based on the closing price on November 13, 2020, reflecting a balanced contribution from both sets of shareholders Combination strongly supported by cornerstone shareholders with voting support agreements received La Mancha commits to inject $200 million in the combined entity George Town & Toronto, November 16, 2020 – Endeavour Mining Corporation (“Endeavour”) (TSX:EDV) and Teranga Gold Corporation (“Teranga”) (TSX:TGZ; OTCQX:TGCDF) are pleased to announce that they have entered into a definitive agreement (the “Arrangement Agreement”) whereby Endeavour will acquire all of the issued and outstanding securities of Teranga by way of a Plan of Arrangement under the Canada Business Corporations Act (the “Combination”). Management will host a joint conference call and webcast today, at 8.30am Toronto time, 1.30pm London time (information provided in the section below). Existing Endeavour and Teranga shareholders will own approximately 66% and 34%, respectively, of the combined company on a fully diluted in-the-money basis. Pursuant to the Plan of Arrangement, Teranga common shares will be exchanged at a ratio of 0.470 Endeavour ordinary shares for each one Teranga common share (the “Exchange Ratio”). The Exchange Ratio represents a modest premium of 5.1% based on the closing price of Endeavour and Teranga’s shares on the TSX on November 13, 2020 and 9.4% based on the 20-day volume weighted average price of both companies for the period ended November 13, 2020. Sébastien de Montessus, President and CEO of Endeavour, said: “This combination offers an attractive oppor...