EDV - Toronto Stock Exchange
EVR - Australian Securities Exchange
VANCOUVER, Oct. 12, 2012 /CNW/ - Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces shareholder approval for the acquisition of Avion Gold Corporation ("Avion") (TSX:AVR, QTCQX:AVGCF) announced on August 7, 2012. Endeavour held a special meeting of its shareholders earlier today and 93.8% of the votes cast were in favour of the resolution approving the acquisition.
Avion also held a special meeting of its securityholders today and 99.5% of the votes cast were in favour of the acquisition by Endeavour. The acquisition is expected to complete on or about 18 October, 2012 (subject to final court approval and other customary closing conditions) and will result in Avion becoming a subsidiary of Endeavour.
Neil Woodyer, CEO, commented:
"The new Endeavour Mining has the assets and finance to grow its gold production from over 300,000 ounces per annum to over 450,000 ounces, generating annual cash margins of over US$350 million. With mines in four neighbouring West African countries, extensive advanced stage projects, a comparatively low cost base, a market capitalisation over US$1 billion and substantially increased liquidity, we are now in a position to pursue an aggressive growth strategy.
Integration of our operations has already begun with emphasis on expanding Tabakoto production, improving mine efficiency and lowering costs. In parallel, an advanced exploration and development program is underway at the Houndé project in Burkina Faso and the Kofi project in Mali.
Endeavour Mining has well-established and experienced operating, mine building and exploration teams based in Accra which are able to cover the gold producing areas of West Africa."
On behalf of Endeavour Mining Corporation
Chief Executive Officer
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.
SOURCE: Endeavour Mining Corporation
For further information:
Vice President - Investor Relations
+1 604 609 6117
UK/Europe: Bobby Morse
+44 20 7466 5000
Australia: David Ikin
Professional Public Relations
+61 8 9388 0944
Endeavour Mining Corporation
Cayman Corporate Centre
27 Hospital Road
George Town, Grand Cayman,
KY1 1109, Cayman Islands
Tel: +1 345 946 7603
Fax: +1 345 946 7604
A Cayman Islands exempted company with limited liability.
ARBN 153 067 639