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Endeavour Silver sells El Cubo mine to VanGold in Mexico

Endeavour Silver Corp. announced Wednesday that it has signed a definitive agreement to sell the El Cubo mine in Guanajuato, Mexico to VanGold Mining Corp.

For this sale, Endeavour Silver will receive $ 15 million in cash and stock payments of more than $ 3 million in contingent payments.

Regarding VanGold’s payment of the 15 million dollars, this will be as follows:

  • A non-refundable down-payment of $500,000 cash (received).
  • $7.0 million cash payment on closing, anticipated by the end of March 2021.
  • $5.0 million in VanGold common shares on closing, priced at $0.2344 (CAD$0.30) per share for a total of 21,331,058 VanGold shares representing approximately 11.3% of the issued shares.
  • $2.5 million promissory note due 12 months from the closing date.

Endeavour Silver agreed to abstain from voting its shares of VanGold, other than as recommended by VanGold’s management, for a period of two years from the closing date and a 12-month restriction on the resale of any VanGold shares acquired in this transaction.

Endeavour Silver

VanGold also agreed to pay Endeavor Silver up to an additional $ 3.0 million in contingent payments based on the following:

  • 1.0 million upon VanGold producing 3,000,000 silver equivalent ounces at El Cubo mill, derived from either the El Cubo or El Pinguico project.
  • 1.0 million if the price of gold closes at or above $2,000 per ounce for 20 consecutive days within two years after closing.
  • And 1.0 million if the price of gold closes at or above $2,200 per ounce for 20 consecutive days within three years after closing.

Additionally, Endeavour Silver announced that its common shares will be added to the S & P / TSX Composite and NYSE Arca Gold Miners (GDX ETF) indices effective after market close on Friday, March 19, 2021, based on their respective first quarter 2021 rebalances, as announced on March 12, 2021.

 

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