Endeavour reports net income of US$41.5 million for quarter ended September
30, 2009
GEORGE TOWN, Grand Cayman,
Revenue for the quarter of US$47.0 million includes US$41.6 million investment income and US$5.4 million of advisory fees, including US$0.7 million of mark-to-market gains on advisory fee securities held.
At
The Corporation's capital base is deployed in a series of merchant banking transactions; as a result, the capital base is principally deployed in companies in which the Corporation is actively involved in guiding corporate development or providing a transaction-based service.
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The Corporation's cash is currently invested in short-term government treasury securities. It is anticipated that this cash will be deployed into gold-sector investments in the near term. The investment in Etruscan Resources Inc. (see News Release,
Neil Woodyer, Chief Executive Officer commented "we are extremely pleased to announce robust financial results for the first quarter. We continue to maximize returns on our strategic investments and we continue to actively generate and secure new advisory mandates. Subsequent to the quarter end we are delighted to have closed our investment in Etruscan Resources Inc. which is the first strategic gold investment in our new gold-focused investment strategy".
Advisory Transactions During the quarter ended September 30, 2009, Endeavour was an advisor and earned transaction success fees on several advisory transactions, including: - Arranged a US$235 million debt package for Bisha Mining Share Company, a subsidiary of Nevsun Resources, to fund the Bisha Gold Project, Eritrea. The lending group was comprised of seven institutions from Europe and South Africa. - Arranged additional commitments totaling US$25 million for Pacific Rubiales Energy Corp. as part of the previously arranged US$250 million, senior secured revolving credit facility. During 2009, Endeavour advised Pacific Rubiales on a total of US$500 million in debt facilities. - Provided a US$9.5 million bridge loan to Petroamerica Oil Corp. (formerly Cantrell Capital Corp.) to acquire certain oil and gas interests in Colombia. Subsequent Events Subsequent to the quarter ended September 30, 2009: - Corporation completed its strategic investment in Etruscan Resources Inc. on October 23, 2009. Endeavour invested approximately US$56 million, resulting in the Corporation holding 179,438,789 common shares, representing 54% of the issued and outstanding shares of Etruscan Resources Inc. The investment has facilitated Etruscan's senior debt restructuring, reduced its hedge position and provided much needed working capital. The current market value of Endeavour's investment is approximately US$90 million. This investment is the first of a series of strategic investments Endeavour intends to make in the junior gold sector as part of its gold-focused investment strategy. - Endeavour's subsidiary, Endeavour Financial International Corporation was appointed Project Finance advisor to Augusta Resource Corporation with respect to financing the Rosemont copper project in Arizona. - Corporation finalized the sale of Orsu Metal's Varvarinskoye gold- copper mine, Kazakhstan to OJSC Polymetal. - Endeavour earned advisory fees on Petroamerica Oil Corp. private placements.
Change to Board of Directors
Following the Corporation's Annual General Meeting held in
Conference Call Details
Management's discussion of the financial results for the quarter ending
About Endeavour Financial Corporation
Endeavour is an independent merchant banking company focused on the global natural resources sector. The Corporation offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies.
Endeavour Financial Corporation is listed on the
For additional information, please visit our corporate website at www.endeavourfinancial.com. In order to access the Corporation's financial statements directly, please click the following URL: http://files.newswire.ca/509/EndeavourQ1.pdf
On behalf of Endeavour Financial Corporation "Bill Koutsouras" Bill Koutsouras Executive Vice President and Chief Financial Officer Endeavour Financial + 377 97 98 7130
The
For further information: Dr. Sally Eyre, Director Marketing & Business Development, Endeavour Financial, (604) 609-6129; Or Vanguard Shareholder Solutions, 1-866-341-4111 or (604) 608-0824, Email: [email protected]
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