African gold producer Endeavour Mining to buy Teranga Gold for $1.86 billion

With an aim to expand its business in West Africa, acquisitive gold producer Endeavour Mining Corp. has agreed to buy Teranga Gold Corp. Endeavour Mining Corp. is backed by Egyptian billionaire Naguib Sawiris.

Issuing a statement on November 16, Endeavour stated that it was offering 0.47 of its own shares per Teranga share. It has valued Teranga’s equity at C$2.44 billion ($1.86 billion).

Gold hits one-week peak as softer dollar, worsening COVID-19 pandemic lift appeal

"By combining our complementary assets, we will enhance our strategic position on West Africa’s highly prospective Birimian Greenstone Belt and we will have the ability to deliver material synergies," Bloomberg quoted Endeavour CEO Sebastien de Montessus as saying.

Adding more, Endeavour statement said, "The combined entity will become a new senior gold producer and enjoy an improved capital markets profile."

Earlier last week, Endeavour said that it was discussing a 'merger of equals style' deal with Teranga. In a similar deal, Barrick Gold Corp. agreed to buy Randgold Resources Ltd.