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Be the first with the news that moves the market- Endeavour Mining (EDV) and Teranga Gold (TGZ) are in merger talks, both companies have revealed, after rumours hit the market early on Tuesday
- Endeavour and Teranga were quick to point out that the talks do not guarantee a merger but that both companies were considering an “equals style combination”
- Earlier this year, Endeavour became Burkina Faso’s largest gold producer, after signing a separate deal with mining company Semafo
- A merger with Teranga would add the Sabodala and Wahgnion gold mines to Endeavour’s current operations in the region
- Currently, Teranga Gold is 4.57 per cent in the green at C$13.74 per share
- Meanwhile, Endeavour Mining shares are 5.78 per cent down at $30.25 each
Endeavour Mining (EDV) and Teranga Gold (TGZ) are in merger talks, both companies have revealed, after rumours hit the market early on Tuesday.
Endeavour and Teranga were quick to point out that the talks do not guarantee a merger but that both companies were considering an “equal style combination.”
If a merger did go ahead, Endeavour would add another key West African gold producer to its stable. Earlier this year, Endeavour signed a separate deal with Semafo, becoming Burkina Faso’s largest gold producer in the process.
A potential deal could net Endeavour the Sabodala and Wahgnion gold mines, as well as a bevy of West African projects, including Teranga’s recently acquired high-grade Massawa project.
Neither company gave any more information and plan to only update the market further if a more substantial decision is reached.
In the interim, Teranga stated it remains focussed on its currently growth plans as a low-cost, mid-tier gold producer in West Africa.
It has been a whiplash week so far for Terranga shares, which fell more than eight per cent yesterday, after positive news about Pfizer’s vaccine sent the price of gold south.
Despite gold dropping, news of a deal with one of Canada’s biggest mining companies have sent Teranga stocks back up.
Meanwhile, the rumoured deal hasn’t aided Endeavour’s shares, which began falling at open yesterday and are now trading 13 per cent down on its price at Friday’s market close.
Currently, Teranga Gold is 4.57 per cent in the green at C$13.74 per share, while Endeavour Mining shares are 5.78 per cent down at $30.25 each.
