Endeavor Mining closed the sale of its 90% stake in its non-core Karma mine in Burkina Faso to Nere Mining for a $25 million total consideration.
The agreement further included a 2.5% Net Smelter Return royalty.
The company predominantly mines gold in a selection of regions including Mali, Burkina Faso and the Cote de Ivoire.
The terms of the agreement included a $10 million reimbursement of historical shareholder loans before the deal closed and a $5 million deferred cash payment which is scheduled for payment six months after closing.
The deal also included a contingent payment up to $10 million, payable one year after closing and based on a sliding scale in correlation with the average price of spot gold.
“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 Endeavor Mining CEO and President Sebastien de Montessus.
“A key consideration in the sale process, was the selection of a party that will maintain our trusted partnerships in Burkina Faso, by committing to operate the mine in the best interest’s of our employees and local stakeholders.”
“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.”
Endeavor Mining’s share price rose 1.5% to 1,995p in early morning trading on Friday following the news.