Under the terms of the option agreement, Ridgestone is entitled to acquire a 100% interest in the project through payments over a four-year period of US $ 1.5 million in cash and US $ 1.75 million in shares based on price. 20-day volume-weighted average of the shares prior to each issue, plus $ 0.75 million in exploration expense, for a total commitment of $ 4 million.
Ridgestone will grant a 2% net smelter return (NSR) royalty to Endeavour, with the option to buy back the 2% NSR for $ 2 million prior to commencement of commercial production.
Overall, it is a mid-tier precious metals mining company that owns and operates three high-grade underground silver and gold mines in Mexico.
To date, the company is 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 of becoming a major senior silver producer.
Mexico captured 2.5 billion dollars of investment in the mining sector in 2020, its lowest level in the last 13 years, estimated the Mining Chamber of Mexico (Camimex).
Mining is one of the sectors with the highest investment amounts; In 2019, this indicator added 4,657 million dollars, 4.9% less compared to 2018, due to the unfavorable conditions of demand and prices at a global level.
In 2020, the activities of the mining industry were closed for two months, as a result of Covid-19, a pandemic that also affected the arrival of capital due to the uncertainty it generated in the global economy.