It was announced that the Toronto listed Endeavour Mining and Australia based Adamus Resources were to enter a merger to form a new West Africa focused gold producing mining company. They signed a definitive Merger Implementation Agreement that will see an all stock merger of equals.
Neil Woodyer from Endeavour Mining will be Chief Executive Officer and Mark Connelly from Adamus Resources will be Chief Operating Officer, of the new company that results from this merger. The new company will have its operational management based in Perth and will report to the Chief Operating officer.
The Board of Directors will have three nominees each from Endeavour Mining and Adamus Resources. Adamus' nominees are Mark Connelly, Martin Reed, and Dr. Antony Harwood while Endeavour's nominees are Neil Woodyer, Jorge L. Gamarci, and Wayne McManus. Endeavour will hold 55% of the combined entity on a fully-diluted basis, with Adamus shareholders holding the remainder.
The merger will give the new company strong cash generation ability from the two operating gold mines which are the Youga Gold Mine, in Burkina Faso and Nzema Gold Mine, in Ghana. The new company will have 2011 forecast production of 172,000 ounces at a cash cost of between US$575 to $625 per ounce.
A decision based on the feasibility study for the possible construction of the Agbaou project in Côte d’Ivoire owned currently by Endeavour Mining will also be taken in the first quarter of 2012. If they do go ahead the mine development skills of Adamus Resources will come in very handy.
Mr Woodyer said that they looked forward to working with Mark Connelly and his team's West African mine building experience which will enhance their Agbaou mine development team and future projects. Merging with Adamus is a significant step forward a we seek to become a mid-tier gold producer he added.
Source: Endeavour Mining