Endeavour Silver (EDR.TO) traded 4% lower at last look Tuesday on NYSE pre-market trading after saying it signed a definitive agreement to acquire Compania Minera Kolpa and its Huachocolpa Uno mine in Peru for US$145 million in cash and shares
Endeavour expects the mine to increase its production by about five million silver equivalent ounces.
"The acquisition of the Kolpa mine represents a material increase to our [silver equivalent] production and is a testament to our team's dedication and vision and is not only about expanding our production portfolio; it's a strategic step toward shaping a stronger, more dynamic future for the company," said Dan Dickson, Endeavour's CEO.
The price paid includes US$80 million in cash and US$65 million in shares, Endeavour said. The miner also agreed to pay up to an additional US$10 million in contingent payments. As part of the transaction, Minera Kolpa's net debt of about US$20 million at the end of 2024 will remain outstanding.
Endeavour said the cash part of the deal will be funded through a combination of net proceeds from a new copper stream on the mine, a US$40 million bought deal financing, and cash on hand.
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