Endeavour Mining Corporation (EDV.TO)(EDVMF) (“Endeavour”) is pleased to announce that its largest shareholder, La Mancha Holding S.A.R.L. (“La Mancha”), has exercised its anti-dilution right to re-increase its stake from its current 28.1% interest to its initial 29.9% ownership position, by means of a C$63.4 million (approximately US$47.5 million) private placement (the “Placement”).
Sébastien de Montessus, President & CEO, stated: “This additional investment by La Mancha, which has to-date injected approximately US$190 million in Endeavour, further demonstrates its long-term support and its strong conviction in our ability to continue to create shareholder value.
With this increased financial flexibility, we are well-positioned to progress our upcoming organic growth opportunities, which include both the Ity CIL project and our ambitious five-year exploration program.“
Pursuant to the Placement, La Mancha will acquire 2,573,372 common shares of Endeavour at the 20-day volume weighted average price (“VWAP”) of C$24.62 per common share. Prior to the Placement, La Mancha held 26,252,932 common shares of Endeavour, representing 28.06% of Endeavour`s outstanding common shares. Following completion of the Placement, La Mancha will hold 28,826,304 common shares, representing 29.99% of Endeavour`s common shares.
The proceeds of the Placement are intended to be used to support Endeavour`s organic growth, notably the potential development of the Ity CIL project and its long-term exploration program, as well as for general corporate purposes.
The Placement is subject to the approval of the Toronto Stock Exchange.