Endeavour Mining spins-out of Endeavour Financial its non-core debt and M&A advisory business
GEORGE TOWN, Grand Cayman, Nov. 9, 2011
Toronto Stock Exchange: EDV
GEORGE TOWN, Grand Cayman, Nov. 9, 2011 /CNW/ - Endeavour Mining
Corporation ("Endeavour" or the "Corporation") (TSX:EDV) is pleased to
announce the sale of the Corporation's Debt Finance and related M&A
advisory business (the "Advisory Business") to a group of its senior
professionals including a new managing partner. This team will be led
by David Rhodes, Endeavour's current Managing Director of Debt Finance,
and Steve Smith, who is joining from WestLB where he is the Global Head
of Metals & Mining. George Pyper of Endeavour's Debt Finance business
will become a senior partner. The Advisory Business will continue to be
conducted under the Endeavour Financial name and will continue to
advise Endeavour on its corporate debt financings.
Pursuant to the purchase agreement, the Corporation will receive
payments of up to $20 million based on future profitability of the
Advisory Business. At closing, a new company established by the
purchasers to conduct the Advisory Business will be assigned the
current debt and M&A mandates (with limited exceptions), and the
Advisory Business will take over the London office from the
Corporation. The Corporation will have the right to appoint two of
five directors to the board of Endeavour Financial until it has
received payment of $10 million. Thereafter, the Corporation will
appoint one of five directors until the remaining $10 million balance
has been paid.
Neil Woodyer, CEO, commented "With the significant growth of our gold
business, now is the appropriate time to adjust the ownership of the
Advisory Business and establish Endeavour Financial as a completely
independent business. Endeavour immediately benefits from reduced
corporate overhead with estimated savings of $2.5 million for 2012,
while maintaining its participation in the future success of the
Advisory Business through payments of up to $20 million. This
transaction completes our transition into a gold mining business in
advance of the pending merger with Adamus Resources Limited, and allows
for better comparison to our gold mining industry peers. We anticipate
a smooth transition for Advisory Business clients and we welcome Steve
to the team. We wish Endeavour Financial success as it builds an
independent business over the next few years."
Frank Giustra, through Fiore Financial Corporation's ("Fiore") exclusive
consulting arrangement, and Neil Woodyer remain with Endeavour's gold
business and will not be participants in the Advisory Business. Fiore
provides significant strategic advice and guidance to the Corporation's
gold business growth strategy.
About Endeavour Mining Corporation
Endeavour is a gold producer. Endeavour also holds an extensive
exploration land position and various advanced-stage development gold
projects in West Africa. Endeavour has a global strategy, supported by
financial resources and management's company building expertise, to
grow into an intermediate gold producer through strategic acquisitions.
On August 21, 2011, Endeavour and Adamus Resources Limited (ASX:ADU)
announced they have entered into a definitive Merger Implementation
Agreement to combine through an all-stock merger of equals transaction
creating a new growth focused West African gold producer. The merger is
scheduled to close during December 2011.
The common shares of Endeavour Mining Corporation are traded on the
Toronto Stock Exchange under the symbol "EDV".
On behalf of Endeavour Mining Corporation
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The
foregoing information may contain forward-looking information relating
to the future performance of Endeavour Mining Corporation.
Forward-looking information, specifically, that concerning future
performance, is subject to certain risks and uncertainties, and actual
results may differ materially. These risks and uncertainties are
detailed from time to time in the Corporation's filings with the
appropriate securities commissions.