The government of Côte d'Ivoire has granted a mining permit for Endeavour Mining’s 85%-owned Agbaou gold project. This property is being constructed and will commence production in the first quarter of 2014.
The terms and conditions of the permit are as anticipated and comprise:
- A 334 sq. km area
- A 10% free carried interest to state
- A 3% of royalty to the state
The company has obtained the mining permit as per the former agreement. In addition, it will offer SODEMI, which is the state firm for mining development of Côte d'Ivoire, a 5% free carried interest, bringing the total interest of the state partner to 15%.
Other mining permits are not necessary to construct and produce at the Agbaou gold project. The company has completed the recruitment process for this main project. The crop compensation of main infrastructure zones has entered into the advanced phase. These aspects are in line with the anticipated timelines to achieve production in the first quarter of 2014.
Endeavour Mining is a producer of gold and owns two mines that produce roughly 200,000 oz of gold per annum in Burkina Faso and Ghana. The mines generate considerable operating cash flows to support exploration and expansion. Besides the present operations, the company’s Agbaou gold mine located in Côte d'Ivoire has started the construction stage for further 100,000 oz of gold per annum. Additionally, Endeavour signed a definitive contract to purchase Avion Gold in order to become one of the leading gold mining firms in West Africa with three gold producing mines.