Brief: True Gold Mining to combine with Endeavour Mining

Renegade Gold

04/03/2016 13:29

March 4 (Reuters) - Endeavour Mining Corp  EDV.TO : 
 * True gold mining to combine with Endeavour Mining 
 * All of true gold's shares will be exchanged on basis of 0.044 of an Endeavour 
   share for each true gold common share 
 * Says deal valued at about C$240 million 
 * Says the share consideration represents a value of approximately C$0.57 per 
   true gold common share 
 * Says share consideration represents a 43% premium based on each company's 
   respective closing price on March 3, 2016 
 * Announced that la mancha has elected to exercise its pre-emptive right to 
   maintain its 30% interest 
 * Says Endeavour has agreed to acquire all of issued and outstanding common 
   shares of true gold in an all-share transaction 
 * Reciprocal termination fee in the amount of C$4.5 million should the 
   arrangement agreement be terminated in certain circumstances 
 * Co, Endeavour entered into loan agreement whereby Endeavour is providing a 
   $15 million convertible loan 
 * Board of directors of true gold formed a special committee to consider the 
   proposed transaction 
 * La mancha contributing additional cash funding of about C$83 million in 
   support of combined co 
 * La mancha's exercise to maintain interest to result in true gold shareholders 
   owning about 22% of combined co 
 * True gold and co have also entered into an unsecured loan agreement whereby 
   co is providing $15 million convertible loan 
 
* Source text for Eikon  ID:nCCN78Wtqv  
 
* Further company coverage  EDV.TO  
 
 
 ((Bengaluru Newsroom; +1 646 223 8780))