Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Endeavour Mining Corp.(TSX:EDV, ASX:EVR), through its wholly-owned subsidiary Endeavour Gold Corporation announced Thursday it acquired control and direction over 139,971,947 common shares of Avion Gold Corp. (TSX:AVR), which represent 100% of the issued and outstanding common shares in that company.
Shareholders of both firms overwhelming approved the takeover of Avion by Endeavour last Friday, in a deal originally valued at $389 million.
The takeover of Toronto-based Avion by Vancouver-based Endeavour sees Avion shareholders receiving 0.365 of an Endeavour share for each of their shares.
Vancouver-based Endeavour said at the time that the combination, under which Avion will become a subsidiary, would help boost its gold output by about 50%
In line with the growth of the business, Endeavour has expanded its board from seven to eight directors. John Begeman, the CEO and President of Avion and James H. Coleman, Q.C., the former Chairman of Avion, have been appointed as new directors of Endeavour. In order to facilitate these appointments, Martin Reed has resigned from the Endeavour Board. The Endeavour Board wishes to express its gratitude to Mr. Reed for his valued contribution since joining the Endeavour Board in December 2011.
Both mining companies are focused on properties in West Africa.
Comments
Dr Stephen Nordstrom
Just wondering: will they be affected ( not infected ) by Ebola.
Guess they can just close the mines until it all blows over.