News will be coming shortly.
This from Endeavour Silver will be the subject of the news I am sure:
VANCOUVER, British Columbia, Dec. 18, 2020 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) (“Endeavour”) announces that it has signed a binding Letter Agreement (“Agreement”) to sell its El Cubo Mine and related assets to VanGold Mining Corp. (“VanGold”) for US$15 million in cash and share payments plus additional contingent payments (the “Transaction”).
Bradford Cooke, CEO of Endeavour commented, “We are pleased to enter into this transaction to sell our El Cubo assets to VanGold. They are an ideal fit given the proximity of the Pinguico property to the El Cubo plant. We will become VanGold’s largest shareholder and look forward to supporting the VanGold team as they advance the Pinguico and El Cubo assets through exploration and development to production.”
VanGold will pay US$15.0 million to Endeavour for the El Cubo assets as follows:
- US $0.5 million non-refundable cash down-payment
- US$7.0 million cash on closing on or before March 17, 2021
- US$5.0 million in VanGold common shares on closing – priced at C$0.30 per share for a total of 21,331,058 VanGold shares representing 16.1% of VanGold’s updated share capital
- US$2.5 million unsecured promissory note due and payable within 12 months from closing
Endeavour has agreed to abstain from voting its shares of VanGold, other than as recommended by VanGold’s management for a period of 2 years after closing and a 12-month restriction on the resale of any VanGold shares acquired in this transaction.
VanGold has also agreed to pay Endeavour up to an additional US$3.0 million in contingent payments based on the following events:
- US$1.0 million - upon VanGold producing 3,000,000 Silver Equivalent ounces from the El Cubo mill.
- US$1.0 million - if the price of gold closes at or above US$2,000 per ounce for 20 consecutive days within two years after closing.
- US$1.0 million - if the price of gold closes at or above US$2,200 per ounce for 20 consecutive days within three years after closing.
Closing of the Transaction is subject to satisfaction of certain conditions including final due diligence by VanGold, financing and receipt of all requisite third party and regulatory approvals including the acceptance of the TSXV on or before March 17, 2021, failing which either VanGold or Endeavour may terminate the Agreement.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera Mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information:
Galina Meleger, Director, Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com