06/12/2011 - 14:45

Endeavour and Adamus merger complete

06/12/2011 - 14:45


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Endeavour Mining began trading on the ASX this morning after the merger between Endeavour and Adamus Resources became effective yesterday.

The move creates a new West Africa-focused gold miner producing more than 250,000 ounces each year.

The merger made available a $200 million corporate loan from UniCredit Bank AG, from which Endeavour promptly withdrew $100 million.

The company said the money has been used to fully repay Adamus’ $57 million Nzema gold project loan and to provide liquidity and flexibility.

Endeavour also announced a 55 per cent reduction of its hedge book volume at the Nzema mine, reducing the book by 139,000 ounces for a cash settlement of US$96.7 million.

The merger sees a combined management team introduced, with CEO Neil Woodyer holding onto his position and former-Adamus managing director appointed COO.

Mr Woodyer said significant work had gone into the merger.

“As planned, we have moved quickly to implement the new management structure, repay the Nzema project loan, and significantly reduce the Nzema hedge book,” he said.

“With less than 6 per cent of our attributable 2.0 million reserve ounces hedged, we have greatly improved our exposure to the price of gold and our attractiveness as a gold producer in the marketplace.”

Endeavour shares were trading at $2.56 at 2:40pm WST today.


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