ENDEAVOUR Mining said yesterday it will acquire Toronto-listed Semafo in a CA$1bn (£597.1m) deal to create the biggest gold producer in Burkina Faso, increasing its focus on the country despite rising insecurity.

The combined group will produce 1m ounces of gold a year, Endeavour chief executive Sebastien de Montessus said, making it larger than Newmont Goldcorp, Barrick, and Goldfields in west Africa.

Endeavour shareholders will own about 70 per cent of the combined company, with the rest going to Semafo shareholders. The deal represents a premium of 54.7 per cent to Semafo's Friday close.

Semafo shares have halved in value since the start of November last year, when a convoy of employees was attacked near its Boungou mine in eastern Burkina Faso, causing 39 deaths and halting operations at the facility.

Semafo boss Benoit Desormeaux is set to become president of the combined group, while chief financial officer (CFO) Martin Millette will be group CFO. Reuters

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