ADU - Adamus Shareholders Support Merger with Endeavour Mining Corporation

Monday, 28 November 2011
 

ADAMUS RESOURCES SHAREHOLDERS SUPPORT MERGER WITH ENDEAVOUR MINING CORPORATION

 I am pleased to report that the Company�s shareholders have voted overwhelmingly in support of the proposed merger with Endeavour Mining Corporation.

The merger will lead to the creation of a new growth-focused West African gold producer.

The combined company, to be known as Endeavour, will have a strong portfolio of assets including two operating gold mines � Nzema Gold Mine in Ghana and Youga Gold Mine in Burkina Faso � with estimated gold production of 172,000 ounces during 2011.  

Gold production is expected to increase to approximately 250,000 ounces per year by the end of 2013.  Furthermore, the Company has a number of exploration opportunities in Ghana, Burkina Faso, C�te d�Ivoire, Mali and Liberia which have the potential to bring additional growth to the business in future years.

As a combined entity, the Company will have a greater financial strength.  It intends to fully repay Adamus� Nzema US$57 million Nzema project debt and invest at least US$100 million to significantly reduce gold hedging volumes. This will result in greater leverage to the gold price, increased operating cashflow and EBITDA, and increased management flexibility.

The merger is expected to be completed during December 2011.  Under the new structure, I will be Chief Operating Officer and will oversee the Company�s operations from Perth, while Neil Woodyer from Endeavour will be Chief Executive Officer.

This is a merger of equals which puts the platform in place for the next stage of the Company�s development.  Not only does it create scale, it gives us a much stronger balance sheet which will enable us to pursue additional growth opportunities as they arise.

Click here to see the Results of the Scheme Meeting
http://www.adamusresources.com.au/media/11-11-28%20Scheme%20Meeting%20Results.pdf

MARK CONNELLY
Managing Director / Chief Executive Officer