Allens Arthur Robinson (Allens) has advised Toronto Stock Exchange-listed gold miner, Endeavour Mining Corporation, on its Merger Implementation Agreement (MIA) with Australian Securities Exchange-listed Adamus Resources Limited.

The MIA will be implemented as a Scheme of Arrangement under the Australian Corporations Act. The merger of equals transaction will create a new growth-focused West African gold producer, with production coming from Endeavour’s existing Youga Gold Mine in Burkina Faso, and Adamus’ Nzema Gold Mine in Ghana.

Under the deal, Adamus shareholders will receive 0.285 Endeavour shares per Adamus share they hold, with the Endeavour shares to be listed on the ASX.

Partner Wendy Rae, who led the Allens team on the matter, said the MIA paves the way for Endeavour and Adamus to produce a combined 172,000 ounces of gold from the Youga and Nzema mines in 2011, at a cash cost of about US$575-$625 per ounce.

‘That production rate is expected to increase to about 250,000 ounces a year by the end of 2013,’ Ms Rae said.

‘This MIA was the first time we had worked with Endeavour and it has been a great experience.

‘We believe the deal positions our client to achieve its future growth objectives.’

Allens and Ms Rae have advised a number of Canadian corporations on their international business in 2011, including the Canada Pension Plan Investment Board on the July sale of its stake in toll road operator Transurban Group for A$903 million.