Endeavour Mining Corp yesterday said that it will buy fellow Canadian gold miner Avion Gold Corp, for C$389 million in an all-stock deal in order to expand in West Africa.
Endeavour's offer is valued at 88 Canadian cents per share, based on its yesterday closing price, a premium of 57 per cent to Avion's yesterday closing price.
Vancouver-based Endeavour said that the acquisition will immediately increase its forecast gold production by approximately 50 per cent to 282,000 - 304,000 ounces for 2012
The acquisition of Avion will create one of the largest West African mining companies with three producing mines and a fourth mine currently under development.
Endeavour owns two gold mines producing approximately 195,000 ounces annually in Ghana and Burkina Faso. The miner also owns another gold mine in Agbaou in Côte d'Ivoire, which has entered construction phase and will add 100,000 ounces per year when fully operational in Q1 2014.
Toronto-based Avion holds 80 per cent of the Tabakoto and Segala gold projects in western Mali and the advanced 1,670 km Houndé property in Burkina Faso.