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Endeavour Mining Corp
Symbol EDV
Shares Issued 107,727,522
Close 2018-08-31 C$ 19.81
Market Cap C$ 2,134,082,211
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Endeavour Mining to sell Tabakoto interest to BCM

2018-09-04 07:11 ET - News Release

Mr. Sebastien de Montessus reports

ENDEAVOUR ANNOUNCES THE SALE OF ITS NON-CORE TABAKOTO MINE

Endeavour Mining Corp. has entered into a binding sale agreement for its interest in the non-core Tabakoto mine to Algom Resources Ltd., a subsidiary of BCM Investments Ltd., for a total cash consideration of $60-million (U.S.). The consideration is payable upon closing of the transaction which is expected to occur during the fourth quarter of 2018.

Sebastien de Montessus, president and chief executive officer of Endeavour Mining, stated: "We are pleased to continue to pursue our portfolio management strategy through the sale of our non-core Tabakoto mine. This will increase our overall portfolio quality and allow management to focus on high cash generating assets with low AISC and long mine lives. Tabakoto has been sold following a comprehensive review which determined that the capital investments required to reduce its AISC did not meet our capital allocation criteria.

"We believe this transaction will benefit Tabakoto's stakeholders, including employees, the government of Mali, and local communities as BCM Investments is a long-standing partner with the right set of skills, expertise and investment capabilities to maximize Tabakoto's operational performance. We are confident that Algom will ensure a smooth transition and will continue to develop the mine, as was demonstrated with their previous Nzema acquisition last year."

Peter Spivey, chief operation officer of Algom, stated: "We are very pleased for the opportunity to enter into this arrangement with Endeavour. The Tabakoto mine has been well established as both an open-pit as well as underground mining operation for a number of years and we recognize it has excellent geological potential to continue operating well into the future. The underground operations at Segala and Tabakoto are well understood, and we look forward to working closely with our business partners in making improvements to the efficiency and operating costs of the operations. Algom will also make significant investment as required in further drilling to secure the pipeline of open pit as well as underground ore resource targets that have been well identified by Endeavour."

About Tabakoto

The Tabakoto gold mine is located approximately 360 km west of Bamako in southwestern Mali, near the Senegal border. Endeavour's current ownership ranges from 80 per cent to 90 per cent depending on the pits, with the remainder owned by the government of Mali.

Tabakoto is an open-pit and underground mining operation with a 1,400-tonne-per-annum gravity/CIL (carbon in leach) processing facility. In 2017, Tabakoto produced 144,000 ounces of gold at an AISC (all-in sustaining cost) of $1,148 per oz. Tabakoto produced 53,000 oz at an AISC of $1,298/oz for the first half of 2018.

Advisers

Endeavour's financial adviser is BMO Capital Markets and its legal adviser is Linklaters LLP. BCM Investments' legal adviser is Baker & McKenzie.

About Endeavour Mining Corp.

Endeavour Mining is a Toronto Stock Exchange-listed intermediate African gold producer with a solid record of operational excellence, project development and exploration in the highly prospective Birimian greenstone belt in West Africa. Endeavour is focused on offering both near-term and long-term growth opportunities with its project pipeline and its exploration strategy, while generating immediate cash flow from its operations.

Endeavour operates five mines across the Ivory Coast (Agbaou and Ity), Burkina Faso (Hounde, Karma) and Mali (Tabakoto), which are expected to produce 670,000 to 720,000 ounces in 2018 at an AISC of $840 to $890/oz. Endeavour's high-quality development projects (recently commissioned Hounde, Ity CIL and Kalana) have the combined potential to deliver an additional 600,000 oz per year at an AISC well below $700/oz between 2018 and 2020.

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