Endeavour Silver sells Bolañitos mine to Guanajuato in $50M deal

Core Transaction Details - Endeavour Silver has agreed to sell its Bolañitos mine to Guanajuato Silver Company for up to $50 million, consisting of $30 million in cash and $10 million in Guanajuato shares [1] - An additional $10 million in contingent payments is tied to production milestones from Bolañitos, with $5 million payable on the first 2 million oz. of silver-equivalent produced and another $5 million on the next 2 million oz. [2] Strategic Focus - The sale allows Endeavour Silver to concentrate on its core silver assets in Mexico, particularly the Terronera mine and Pitarrilla project [3] - The Terronera mine is expected to become Endeavour's flagship asset, with operations starting in July and reaching commercial production last month, forecasted to deliver 4 million oz. of silver and 38,000 oz. of gold annually over a 10-year mine life [4] Resource and Growth Potential - The Pitarrilla project hosts one of the world's largest undeveloped silver resources, with 491.6 million oz. in measured and indicated categories, along with significant lead and zinc resources [5] - Bolañitos produced approximately 450,000 oz. of silver and 25,000 oz. of gold last year and is located in Guanajuato, a major silver mining district in Mexico [6] Guanajuato Silver's Expansion - The acquisition of Bolañitos adds a fifth operating asset to Guanajuato Silver's portfolio, which includes three primary silver mines and a gold mine [7] - Bolañitos has a land package of 25.4 sq. km and is expected to add about 7.5 million oz. of silver and 132,000 oz. of gold to Guanajuato's resource base [7] Synergy and Integration - There is potential synergy between Bolañitos and Guanajuato's San Ignacio mine, as Bolañitos surrounds San Ignacio on three sides, allowing for low-cost processing of mined material [8] - Guanajuato Silver has begun preparations for the seamless integration of Bolañitos into its production portfolio to quickly realize economic benefits from the acquisition [9] Additional Assets - The transaction includes the historic Cebada mine, which Guanajuato intends to reactivate post-acquisition, currently on care and maintenance [10]