Multinational mining company Endeavour Mining has announced talks to merge with west African rival Teranga Gold as safe-haven gold prices have risen thanks to the global stimulus to protect economies from the fallout from the COVID-19 pandemic.

Through a so-called "equal style" merger, the Canadian miner is considering an all-stock purchase and could offer a low premium for Toronto-listed Teranga. Endeavour, which is 24.12% owned by Egypt's Sawiris family, is on the track of acquisitions this year as gold prices have risen thanks to the global recovery.

Last March, Endeavour Mining acquired Semafo to become Burkina Faso's largest gold producer, one of the 15 largest gold producers in the world and the largest in West Africa. If the operation is successful, Endeavour will have another operating mine – Wahgnion, in addition to Endeavour's four existing mines in Burkina Faso, namely Boungou (acquired from SEMAFO); Karma; Mana; and Hounde and will also give him an exhibition in Senegal.

For its part, Teranga last year bought Barrick Gold's 90% stake in Senegal's Massawa project in Senegal in a $430 million deal. The company remains focused on developing its portfolio of high-growth assets. while the company strengthens its position as a low-cost mid-tier gold producer in West Africa. Teranga's strategy is to maximize shareholder value by increasing long-term free cash flow through diversification and growth while remaining fiscally prudent.