SeverstalENDEAVOUR AGREES TO SELL 43% INTEREST IN CREW GOLD FOR US$215 MILLION CASH
Last Update: 9/13/2010 9:59:00 AM
GEORGE TOWN, Grand Cayman, Sep. 13, 2010 (Canada NewsWire via COMTEX) --Toronto Stock Exchange: EDV
Endeavour Financial Corporation ("Endeavour") is pleased to announcethat its wholly owned subsidiary, Endeavour Gold Luxembourg SARL, hassigned a binding agreement for the sale of 46,203,403 common shares ofCrew Gold Corporation ("Crew Gold") representing a 43% interest toSeverstal Gold N.V. for US$215 million in cash. Endeavour had acquiredits investment in Crew Gold at a total cost of US$134.5 million suchthat the sale of this investment realizes a profit of US$80.5 million atan annualized return on investment of 124%. Closing of the sale isanticipated to occur within the next forty eight hours.
Neil Woodyer, Chief Executive Officer commented: "Endeavour has acceptedthe opportunity to exit its investment in Crew Gold at a significantprofit which is a superior alternative to remaining in a minorityshareholder position. The capital derived from monetizing thisinvestment will be used to fund our growth and build value for Endeavourshareholders. Following this transaction Endeavour has approximatelyUS$180 million of cash and access to a US$100 million AcquisitionFacility. We are now in a position to aggressively seek acquisitionopportunities in the gold sector."