Endeavour Mining said it had sold its 90% interest in its non-core Karma mine in Burkina Faso to Néré Mining for up to $25m plus a 2.5% net smelter return royalty.
Under the terms of the deal $10m was received prior to closing, in the form of a reimbursement of historical shareholder loans, a deferred cash payment of $5m will be paid in six months.
There is a contingent payment of up to $10 million, payable in a year on a sliding scale linked to the average spot gold price.
“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 chief executive Sébastien de Montessus.
Endeavour updated its production and all-in sustaining cost (AISC) guidance for continuing operations to account for the removal of Karma’s guided production of 85 – 100koz at a AISC of $1,200 – 1,250/oz for 2022, with guidance for the other operations remaining unchanged.
Production guidance for 2022 continuing operations has decreased to 1,315 – 1,400koz from 1,400 – 1,500koz, while AISC guidance from continuing operations has decreased by $10/oz to $880 – 930/oz.
