Canada's Endeavour Mining to buy True Gold for about C$240 million

Fri Mar 4, 2016 9:14am EST
 
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(Reuters) - Canadian miner Endeavour Mining Corp EDV.TO agreed to buy True Gold Mining Inc TGM.V for about C$240 million in stock giving it access to a low-cost gold mine nearing production in Burkina Faso.

Endeavour will pay 0.044 of its share for each True Gold share. The offer values True Gold at about C$0.57 per share, a premium of roughly 43 percent to the stock's close on Thursday.

The deal is expected to close in late-April, True Gold said in a statement.

National Bank Financial Inc is acting as financial adviser to True Gold and Blake, Cassels & Graydon LLP is the legal counsel. Haywood Securities Inc provided a fairness opinion on the deal.

(Reporting by Manish Parashar in Bengaluru; Editing by Savio D'Souza)