The company has launched a private placement of convertible senior notes, at a minimum of $200,000 for a total of $300 million, and has granted the initial purchasers a 30-day option to purchase additional notes totalling up to $30 million, which if exercised could take net proceeds to $325.9 million.
The notes will mature in February 2023 and may be redeemed for shares, cash or a combination.
Endeavour has also applied for the notes to list on the International Stock Exchange (formerly the Channel Islands Securities Exchange) or another exchange by April 30.
The company's net debt increased from $26 million in 2016 to $221 million in 2017, mainly due to the drawdown of $160 million on its Revolving Credit Facility (RCF) for the construction of the Houndé mine in Burkina Faso which poured first gold ahead of schedule and below budget in October.
In its full-year results released this month, Endeavour said it was well positioned to fund growth as its available sources of financing and liquidity totalled $322 million - $122 million cash and $200 million undrawn on the RCF, as well as strong cash flow generation, including the remaining proceeds from its Nzema sale.
The gold producer achieved guidance in 2017, producing 663,000 ounces, and expects this to increase in 2018 to 670,000-720,000oz at an all-in sustaining cost of $840-$890/oz.
Endeavour shares, which have ranged between C$19.77-$28.81 over the past year, closed down 13.15% yesterday to $21.80.