|
ENDEAVOUR MINING REPORTS CLOSING OF SALE OF NON-CORE DIAMOND ASSETS AND UPDATES PROGRESS WITH ADAMUS
October 13, 2011
George Town, Grand Cayman - Endeavour Mining Corporation (TSX:EDV ) is pleased to announce the closing of the sale of its 47.3% owned diamond subsidiaries, which were acquired as part of the Etruscan Resources Inc. acquisition in 2010. As consideration for the sale, Endeavour received 1,234,660 shares of Rockwell Diamonds Inc. ("Rockwell") (TSX:RDI), which were valued at approximately CDN$0.6 million on October 11, 2011, and Rockwell assumed all the debt and contingent liabilities of the Corporation related to the diamond assets, which at June 30, 2011 were US$14.8 million. Total net liabilities of Endeavour's diamond subsidiaries at June 30, 2011 were US$2.7 million. The agreement to sell these non-core diamond assets was announced in September 2010 as part of Endeavour's strategic plan to grow into an intermediate gold producer.
Endeavour is currently implementing a merger of equals transaction with Adamus Resources Limited ("Adamus") (ASX:ADU) to combine and create a new growth focused West African gold producer. Consistent with the Indicative Timetable for Completion presented in the joint Endeavour and Adamus press release on August 21, 2011, the TSX Circular to Endeavour Shareholders in now being prepared and is scheduled to be dispatched to Endeavour's shareholders at the end of October 2011 allowing shareholders to vote on the transaction during November 2011. Adamus has also made significant progress preparing its Scheme Booklet for the Adamus shareholders.
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 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
"Christian Milau"
Christian Milau
Executive Vice President & Chief Financial 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.
---------------------------------------------------------------
For additional information, contact:
Stephen Roberts, Senior Vice President - Investor Relations
Tel: 604.609.6130
sroberts@endeavourmining.com
or
Vanguard Shareholder Solutions
Toll Free: 866.341.4111
Tel: 604.608.0824
investor@endeavourmining.com
www.endeavourmining.com |