Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) announced the sale of its 90% stake in the Karma mine in Burkina Faso to Néré Mining for up to US$25mln plus a 2.5% net smelter return (NSR) royalty.
“The sale of our non-core Karma mine to Néré Mining is in line with our strategy of actively managing our portfolio to focus management efforts on high margin, long-life and low all-in sustaining cost, core assets,” said Sébastien de Montessus, president and CEO of Endeavour.
“We are very pleased to sell Karma to Néré Mining as we have confidence that they can leverage their experience and knowledge gained from their local investments to maximise Karma’s future prospects.”
The consideration comprises US$10mln received prior to the closing of the sale, a deferred cash payment of US$5mln payable six months after closing and a contingent payment of up to US$10 million, payable 12 months after closing, linked to the average spot gold price.
The 2.5% NSR royalty is payable on all ounces produced in excess of 160koz of recovered gold from 1 January 2022.
Endeavour said following the sale of Karma, its production guidance for continuing operations has decreased to 1,315koz–1,400koz from 1,400koz–1,500koz, while all-in sustaining cost (AISC) guidance from continuing operations has been revised down by $10/oz to US$880/oz–US$930/oz.