Endeavour Mining (TSX: EDV) has fired its chief executive officer Sebastien de Montessus in a double whammy of personal misconduct with colleagues while attempting to misdirect US$5.9 million in company funds.
The board of directors of the company has claimed that after an internal investigation, Montessus had issued an “irregular payment instruction” related to an asset disposal performed by Endeavour. The board did not state where the funds were directed to be sent, or what timeline the event occurred under, instead stating that the board became aware of the transaction after a review of acquisitions and disposals.
Endeavour notably in June sold its Boungou and Wahgnion mines in Burkino Faso for total consideration in excess of $300 million, which consisted of upfront and deferred cash payments, along with a net smelter return royalty. Consideration included a $130 million payment to be made by July 31, and a $10 million instalment payment by December 31.
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Unrelatedly, the board has indicated that several allegations were made against Montessus via whistleblowers related to “personal conduct with colleagues.” Further details were not provided, with the company stating that it was “considering the appropriate course of action” at the time of Montessus’ termination.
Details on remuneration related to the termination are slated to be provided “in due course.”
Sebastian de Montessus was also removed from the firms board.
Endeavour Mining last traded at $26.88 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
