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Endeavor Silver sells El Cubo mine to VanGold Mining

Endeavor Silver Corp. announced that it sold the El Cubo mine in Guanajuato, Mexico, to VanGold Mining Corp. for $ 15 million in cash and stock payments, plus up to $ 3 million in future contingent payments.

VanGold paid the $ 15 million to Endeavor as follows:

  • 7.5 million in cash at closing.
  • 5.0 million in VanGold common shares (VanGold Shares) at closing, priced at $ 0.2344 per VanGold Share for a total of 21,331,058 VanGold Shares (Consideration Shares) representing approximately 10.9% of the issued shares and VanGold Shares Outstanding.
  • I will pay 2.5 million dollars due 12 months after closing.

Endeavor Silver

VanGold also agreed to pay Endeavor up to an additional $ 3 million in contingent payments based on the following:

  • $ 1.0 million with VanGold production of 3 million silver equivalent ounces from the El Cubo mill, derived from the El Cubo or El Pinguico project, $ 500,000 of which may, at VanGold’s discretion, be paid in VanGold Shares.
  • $ 1.0 million if the price of gold closes at or above $ 2,000 per ounce for 20 consecutive business days within two years from the closing date of the Transaction.
  • Another $ 1.0 million if the price of gold closes at or above $ 2,200 per ounce for 20 consecutive business days within three years of the closing date of the Transaction.

El Cubo

Bradford Cooke, CEO and Director of Endeavor, commented: “I look forward to supporting VanGold in their efforts to become the next junior silver and gold producer in Mexico.”

At the closing of the Transaction, Endeavor acquired 21 million 331,058 Shares of VanGold.

Based on 194 million 931,838 VanGold Shares outstanding as of the closing date of the Transaction, the Consideration Shares represent 10.9% of the VanGold Shares outstanding undiluted.

Prior to the closing date of the Transaction, Endeavor did not own VanGold Shares or other VanGold securities.

 

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