Endeavour Silver (EXK) said Tuesday it has agreed to acquire Compania Minera Kolpa and its Huachocolpa Uno Mine from affiliates of Arias Resource Capital Management and Grupo Raffo for $145 million in cash and stock.
Under the terms of the deal, the acquisition price for the Peruvian silver-focused mining venture will consist of $80 million in cash and $65 million in Endeavour shares.
Endeavour has also agreed to pay up to $10 million additional contingent payments upon the occurrence of certain events and will also add about $20 million in net debt repayable by Minera Kolpa, the company said.
Closing of the transaction is expected within 60 days pending regulatory approvals, the company said.
To fund the cash portion of the deal, the company said it has agreed to sell 10.3 million shares at $3.88 per share for gross proceeds of about $40 million.
The company said it has also granted the underwriters a 30-day option to purchase up to 15% of additional shares to cover over-allotments.
The offering is expected to close on April 8, the company said.
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