NEWS
09/21/2015 07:37 EDT | Updated 09/21/2016 01:12 EDT

La Mancha to acquire 30% stake in Endeavour Mining in strategic partnership

VANCOUVER — La Mancha Holding SARL has a deal to acquire 30 per cent of Endeavour Mining Corp. (TSX:EDV) which will get, in return, a majority stake in the Ity gold mine in western Africa plus up to US$138 million in financial commitments.

La Mancha is a private investment company headed by Naguib Sawiris — an Egyptian businessman who provided some of the funding for the launch of Wind Mobile as a competitor to Canada's largest wireless carriers.

Vancouver-based Endeavour said Monday it will issue 177.1 million of its shares as part of a strategic deal with La Mancha. The stock was worth about C$106.3 million based on Friday's stock price of 60 cents per share.

In return, La Mancha will transfer its 55 per cent interest in the Ity gold mine in Cote D'Ivoire to Endeavour and contribute US$63 million to the acquired businesses, including US$25 million of cash held at Societe des Mines d'Ity SA.

La Mancha has also made an in-principle commitment to invest up to US$75 million to support Endeavour's growth.

Endeavour says the partnership puts it in line to produce 580,000 ounces annually from five operations in western Africa, including in Cote d'Ivoire where the Ity mine is located. 

Other shareholders in the Ity mining business include the Ivorian government, with 10 per cent. The other minority owners are Sodemi (30 per cent) and the Didier Drogba group (five per cent). 

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The Canadian Press