Endomines Finland Plc (HE:PAMPALO) has signed an agreement to sell three gold deposits in Idaho, USA—Friday, Buffalo Gulch, and Deadwood—to Elk Range Minerals LLC, a wholly owned subsidiary of Australian company Yellowstone Mining Pty Ltd. The debt-free purchase price totals AUD $20M, with payments structured across five instalments.
The deal includes associated machinery and equipment, and most Endomines personnel in Idaho will transfer to Elk upon completion, expected within 90 days.
This divestment aligns with Endomines’ updated strategy to focus on gold production at its Pampalo mine and exploration along the Karelian Gold Line. The move is anticipated to deliver significant cost savings, eliminating approximately EUR $0.5M annually in U.S. operational costs.
Kari Vyhtinen, CEO of Endomines Finland Plc. commented, “We are very pleased that the gold deposits have found a new owner with a strong and experienced team and excellent capabilities to develop and grow the area’s potential. We believe this is a clear win-win agreement for both parties and wish Elk Range Minerals every success in further developing the region. The transaction will streamline our business model, deliver significant cost savings, and enable us to focus even more effectively on realizing the potential of the Karelian Gold Line in line with our strategy. In addition, Endomines will have the opportunity to hold a 9.95% stake in Elk Range Minerals’ parent company, providing a strategic foothold and the ability to benefit from the company’s future growth.
Elk Range Minerals was formed specifically to acquire these assets and will concentrate on exploration and development. The company is led by seasoned Australian mining executives with decades of experience in gold projects worldwide.
Campbell Baird, Chairman of Elk also commented, “We see significant exploration and development potential in the Idaho deposits and are excited to be investing in the region. Our team has decades of experience in discovering, developing, and operating gold projects around the world, and are able to focus our time on the progression of these Deposits. We look forward to working closely with the community in Elk City and building on the strong local mining heritage to unlock the full potential of these assets.
Payment Structure:
- A$3.5M on completion
- A$1.5M or 9.95% equity upon Elk ListCo listing
- A$6M at 0.5Moz JORC resource milestone
- A$5M at 1.0Moz JORC resource milestone
- A$4M one year after commercial production start
Endomines expects to record a one-time loss of approximately EUR $3.5M on completion. The company retains rights to the Rescue and Kimberly deposits in Idaho and the US Grant deposit in Montana, as well as an option on the Kearsarge deposit.
“During the negotiations, we identified significant potential in the Montana deposits. We have initiated an external assessment to evaluate the potential and development opportunities. We are looking forward to the outcomes of this assessment and will determine the best strategy for their ongoing progression or monetization afterwards,” says Kari Vyhtinen.
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