March 4 (Reuters) - Endeavour Mining Corp EDV.TO :
* True gold mining to combine with Endeavour Mining
* All of true gold's shares will be exchanged on basis of 0.044 of an Endeavour
share for each true gold common share
* Says deal valued at about C$240 million
* Says the share consideration represents a value of approximately C$0.57 per
true gold common share
* Says share consideration represents a 43% premium based on each company's
respective closing price on March 3, 2016
* Announced that la mancha has elected to exercise its pre-emptive right to
maintain its 30% interest
* Says Endeavour has agreed to acquire all of issued and outstanding common
shares of true gold in an all-share transaction
* Reciprocal termination fee in the amount of C$4.5 million should the
arrangement agreement be terminated in certain circumstances
* Co, Endeavour entered into loan agreement whereby Endeavour is providing a
$15 million convertible loan
* Board of directors of true gold formed a special committee to consider the
proposed transaction
* La mancha contributing additional cash funding of about C$83 million in
support of combined co
* La mancha's exercise to maintain interest to result in true gold shareholders
owning about 22% of combined co
* True gold and co have also entered into an unsecured loan agreement whereby
co is providing $15 million convertible loan
* Source text for Eikon ID:nCCN78Wtqv
* Further company coverage EDV.TO