Endeavour Increases its Stake in the Fetekro Project; Pre-Feasibility Study On Track for Q1-2021
ENDEAVOUR INCREASES ITS STAKE IN THE FETEKRO PROJECT;
PRE-FEASIBILITY STUDY ON TRACK FOR Q1-2021
Increased stake from 65% to 80% · PFS to be based on 3Mtpa · Mining permit process well underway
Abidjan, December 21, 2020 – Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce that it has increased its stake in the Fetekro Project in Côte d’Ivoire, ahead of a Pre-Feasibility Study (“PFS”) which is due to be published in Q1-2021.
Under the terms of the agreement, once the mining permit is granted, Endeavour will be entitled to an 80% stake in the Fetekro Project, compared to 65% currently, while SODEMI (the state-owned mining company) and the Government of Côte d’Ivoire will each have a 10% stake. Endeavour will retain the full ownership of the Fetekro exploration license until such time as it is converted into a mining license.
Sébastien de Montessus, President and CEO, commented: “We are delighted to have concluded this agreement with our long-standing government partners, in a manner which allows all stakeholders to benefit from the value we expect to continue to unlock at Fetekro.
We believe that we have the opportunity to develop Fetekro into a cornerstone asset for Endeavour, which we define as assets with the potential to produce more than 200,000 ounces per annum over 10 years at low AISC. Fetekro has significant exploration potential, an already defined large-scale deposit with straightforward metallurgy and high gold recovery. It also benefits from being located close to existing infrastructure and requires only minimal relocation. We are eager to complete the PFS, which is expected to build on the PEA we recently published based on only half of the current resource, to demonstrate further the robust economics of the project.”
Endeavour acquired the additional stake from SODEMI for a consideration of $19 million plus contingent payments of $3 per ounce for future Proven and Probable reserves defined outside of the existing Measured and Indicated resource boundary. The contingent payment is based on a gold price of $1,450 per ounce and will be adjusted upwards or downwards in a linear relationship with the gold price.
ABOUT THE FETEKRO PROJECT
Located in north-central Côte d’Ivoire, within the northern end of the Oumé-Fetekro Greenstone Belt, the Fetekro Project is approximately 500km from Abidjan and close to existing infrastructure, including sealed roads and grid power.