Australia: Clayton Utz marks major milestone with Endeavour Mining on US$328m Houndé Gold Project in Burkina Faso
Last Updated: 6 August 2016

Perth, 3 August 2016: Clayton Utz has marked a major milestone with intermediate gold producer Endeavour Mining (TSX:EDV) (OTCQX:EDVMF), closing major procurement and finance contracts for their Houndé Gold Project (Houndé) in Burkina Faso.

With an initial estimated capital outlay of US$328 million, Houndé is 90% owned by Endeavour Mining (Endeavour) and 10% by the State of Burkina Faso. Construction began on the Houndé site in April 2016, and the project is on track for start-up of operations in late 2017.

Once operational, Houndé is anticipated to become Endeavour's flagship low cost mine and one of the region's leading cash generating mines. The open pit mine has a forecasted average annual gold production of 190,000 ounces at an All-In Sustaining Cost (AISC) of US$709 per ounce over the first decade of operations.

Major projects and construction partner Clive Luck led the Clayton Utz team advising Endeavour on all aspects of the Houndé contract negotiation and documentation, including the US$46 million contract with Komatsu Japan for the supply of the construction and mining fleet.

Clive Luck said the project finance, procurement and operational structures in place for Houndé were relatively common in other parts of the world but a first for a Japanese financed procurement in the West Africa region.

"This structure assists Endeavour to maintain low operational costs and I expect its success will lead to an increased interest in similarly structured investments in the region, which will subsequently support local economies and development."

The Clayton Utz team was supported by Endeavour's in-house team and Stikeman Elliott in London.

Over 10,000 people, including the President of Burkina Faso, the Prime Minister and other Government ministers, attended the official groundbreaking ceremony for Houndé in June, to mark the beginning of its construction.

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