Endeavour Mining, a multinational mining company that owns and operates the gold mines in Côte d'Ivoire and Burkina Faso, has entered into exclusive talks with Teranga Gold. Teranga Gold is a low-cost mid-tier West African gold producer.
Earlier this year, Endeavour acquired Semafo for $1 billion becoming Burkina Faso’s largest gold producer. The gold industry has seen a flood of acquisitions of smaller producers by bigger firms in the last few years in order to achieve greater scale.
Gold producers are benefiting from a rebound in the price of metal, which recently hit a record high. If this deal goes through, Endeavour would add another operating mine to its existing four in Burkina Faso’s, Wahgnion. It would also give the company exposure to Teranga’s operations in Senegal. Teranga, no stranger to M&A, bought Barrick Gold's 90% stake in the Massawa project in Senegal last year for $430 million.