GEORGE TOWN, Grand Cayman, Feb. 29, 2016 (GLOBE NEWSWIRE) -- Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce that it has received US$25.3 million upon simultaneously signing and closing the sale transaction of its non-core Youga Mine to MNG Gold ("MNG").
The total cash consideration is comprised of US$20 million for the asset and US$5.3 million for the cash-on-hand. In addition, Endeavour has retained a 1.8% Net Smelter Royalty ("NSR") on production realized beyond the current reserve from the property sold, and with the inclusion of a buyback provision.
Neil Woodyer, CEO of Endeavour, stated: "This transaction provides upfront value for Youga's remaining 2 year mine life and gives us greater financial flexibility to pursue growth opportunities. It is in line with our strategic objective of actively managing our portfolio to improve its overall quality.
Since MNG's nearby Balogo high-grade deposit will give a second life to the Youga operation, we firmly believe that this transaction is in the best interest of all stakeholders, including our employees, the government, and the local population."
About the Youga Mine
The Youga Gold Mine is located approximately 180 km southeast of Ouagadougou. Endeavour holds a 90% interest in Burkina Mining Company ("BMC") which has been granted the rights to exploit the Youga Gold Deposit. The remaining 10% of BMC is held by the Government of Burkina Faso.
Youga is an open pit mining operation with a 1mtpa gravity/CIL processing facility. It has recovered a total of over 0.6 million ounces of gold since operations commenced in 2008. Youga employs approximately 665 workers in total, including full time Endeavour employees and contractors.
As at December 31, 2015, Measured and Indicated mineral resources (inclusive of reserves) were 17.8 million tonnes at 1.4 g/t gold containing 0.8 million ounces and the Proven and Probable mineral reserves were 2.5 million tonnes at 1.6 g/t gold containing 0.1 million ounces.
In 2015, Youga produced 68,407 ounces of gold. Production in 2016 is forecast to be 40,000 to 45,000 ounces at a mine-level AISC cost of $980 to $1,030 per ounce.
About MNG Gold
MNG Gold is a privately owned Turkish gold exploration and development company focused on West Africa and Turkey. MNG Gold own the high grade gold Balogo project, located in proximity to the Youga mill, in Burkina Faso and the Kokoya gold project in Liberia. MNG Gold has a broad capacity to explore, develop and produce gold in Turkey and abroad. The Company is owned and financed by Mr Mehmet Nazif Günal, a Turkish entrepreneur.
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Adriaan "Attie" Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release. Michael Alyoshin, MAusIMM CP Min, Endeavour's Chief mining engineer, is a Qualified Person under NI 43-101, and has reviewed and approved the information ore depletion information related to mining operations in this news release. Gérard De Hert, EurGeol, Vice President Exploration is the Qualified Person overseeing Endeavour's exploration projects in West Africa and has reviewed and approved the exploration and resource information in this news release
About Endeavour Mining Corporation
Endeavour Mining is a TSX-listed intermediate gold mining company which operates 5 West African mines in Côte d'Ivoire, Mali, Burkina Faso and Ghana. In 2016, it expects to produce between 575,000 and 600,000 ounces at an all-in sustaining cost of US$875 to US$925 per ounce. Endeavour Mining is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.
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This news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business
 As announced by Endeavour in its Feb 29th, 2016, press release entitled "Endeavour Mining Increases P&P Reserves and M&I Resources by 32% and 39%, respectively" available on the Company's website.
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