Unless another gold miner like B2Gold (TSX: BTO; NYSE: BTG) or Randgold Resources (LON: RRS; NASDAQ: GOLD) sweeps in with a sweeter offer, the boards of both Endeavour Mining (TSX: EDV) and Avnel Gold Mining (TSX: AVK) have unanimously agreed to merge their two West Africa focused gold companies.
Endeavour Mining is looking to fill a few gaps in its project and construction pipeline after it completes its Houndé gold mine in Burkina Faso and its Ity heap-leach gold mine in Côte d’Ivoire, and Avnel’s 80%-owned development stage Kalana gold project in southwestern Mali seems to be the perfect fit, the chief executives of both companies say.
If the deal goes ahead, Kalana would be Endeavour’s second mine in Mali after Tabakoto, 450 km to the north, and the company’s core construction team has a 10-year history of delivering mine construction projects on time and within budget, including Agbaou in Côte d’Ivoire, Nzema in Ghana and Karma in Burkina Faso. Endeavour plans to pour its first gold at Houndé in the fourth quarter of 2017 and at Ity in the first quarter of 2019.
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