By Robb M. Stewart

Endeavour Silver struck a $145 million deal to buy its third producing mine, its first foray into Peru and a big step toward its goal of becoming a major silver miner.

The Canadian precious metals company said Tuesday it reached a definitive agreement to buy all the outstanding shares of Minera Kolpa and its main asset, the Huachocolpa Uno mine, from affiliates of Arias Resource Capital Management and Grupo Raffo.

The purchase price will include $80 million in cash and $65 million work of Endeavour shares. Endeavour also agreed to pay up to an additional $10 million in contingent payments, and will add about $20 million in debt that will remain outstanding and repayable by Minera Kolpa.

The acquisition is expected to increase Endeavour's production by roughly 5 million gold-equivalent ounces.

Kolpa, located in Huachocolpa in Peru's Huancavelica province, originally began as a small-scale operation and has been in continuous production for more than 25 years. The operation has undergone numerous throughput expansions, more than doubling installed capacity from 800 tons a day in 2016 to about 1,800 tons by the end of 2024, Endeavour said.

To help fund the cash portion of the deal, Endeavour said it entered an agreement with Versamet Royalties for copper produced from Kolpa. Additionally, Endeavour said it will sell some 10.3 million of its shares through a syndicate of underwriters to raise about $40 million, with an option for the underwriters to buy up to an additional 15% of the number of shares issued to cover any over-allotments.

Endeavour, which currently has operations in Mexico, said the transaction remains subject to Toronto and New York stock exchange approvals. The stock offering is expected to close on or about April 8, it said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 01, 2025 07:46 ET (11:46 GMT)

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