Endeavor Mining Corporation and Teranga Gold Corporation have announced the merger of their businesses into a single entity. This merger will not have negative impacts on jobs and even less on the management of the company. Insurance is from the Managing Director of Sabadola Gold Operation (Sgo) Abdou Aziz Sy. He was speaking yesterday, Friday November 20 at a press conference
“The merger between Edeavor mining corporation and Teranga Gold Corporation into a single entity will not have any impact on the personnel, or on the management as it currently exists”. The insurance is from the general manager of Sabadola Gold Operation Abdou Aziz Sy. He was speaking yesterday, Friday, November 20 at a press conference. “We also have the same corporate culture. Both campaign for the respect of good practices in terms of mining and the respect of national regulations. There will be no change in the conduct of programs and investments in favor of the communities in the vicinity of the project, ”he reassures.
Regarding Senegal specifically, he argues that Endeavor will capitalize on the existing one by offering employees new career development opportunities with possibilities in four other mines.
According to Mr. Sy, the transaction of this new entity is slated for the first quarter of 2021. “Endeavor is worth $ 4 billion. What will happen is that Teranga shareholders will receive Endeavor shares. This transaction will cost Endeavor $ 2 billion, Teranga’s value. Teranga shareholders will become new shareholders in the new entity. That is, if we have a Teranga action, we receive in exchange 46% of an Endeavor action.
After this merger, the shares of the new Endeavor will rise, ”he said. Regarding the impact of the Covid-19 pandemic on Teranga, Abdou Aziz Sy maintains: “our production fell in the first half of the year. We are also producing less than we expected because of the pandemic. When the pandemic took place, preventive measures had to be put in place. Quarantining teams, reducing rotations, even traveling between regions could not take place. There were more commercial flights to export our products. Charter flights had to be hired to take the production and bring it to the refineries. We had the worst first quarter of all our production years ”.
During the first half of the year, he says, Teranga had a production shortfall of 15,000 ounces. Despite the decline in this production, he notes, the turnover increased because the costs of gold were high during the period of crisis.