ENDEAVOUR AMENDS LA MANCHA INVESTOR RIGHTS AGREEMENT George Town, June 2, 2017 - Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF) announces that its Board of Directors and La Mancha Holding S. r.l. ("La Mancha") have agreed to amend the standstill and lock-up provisions under its Investor Rights Agreement (the "Agreement"), notably lifting La Mancha's maximum allowable ownership level from the currently allowed 30% to 33%.
This amendment has been granted in response to La Mancha's indication that it may wish to purchase additional Endeavour shares in the market. This continues to underline La Mancha's strong commitment to support the Company's growth strategy, as it recently invested a further US$48 million into Endeavour in April 2017 through a private placement, bringing its total equity injection to circa US$190 million since completing its strategic investment in Endeavour in November 2015. Furthermore, any such purchases may occur when additional liquidity might be provided by the upcoming rebalancing of the Market Vectors Junior Gold Miners ETF.
Under the original Agreement, the standstill restriction prevented La Mancha from exceeding an ownership level of 30% for a period of two years from November 27, 2015, and the lock-up prevented La Mancha from disposing of Endeavour shares during the same period. The announced amendment permits La Mancha to purchase additional Endeavour shares up to a maximum level of 33% and to dispose of its Endeavour shares. La Mancha has not indicated any intention to dispose of or reduce its strategic stake in Endeavour and remains supportive of the growth strategy. The amended standstill restriction will expire, as initially agreed, on November 27, 2017.