Endeavour Silver Corp. completed the acquisition of Pitarrilla Project in Durango, Mexico from SSR Mining Inc..
July 05, 2022
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Endeavour Silver Corp. (TSX:EDR) entered into a definitive agreement to acquire Pitarrilla Project in Durango, Mexico from SSR Mining Inc. (TSX:SSRM) for $70 million on January 12, 2022. Total consideration consists of $35 million in cash, $35 million in Endeavour Silver shares and a 1.25% net smelter return royalty on the Pitarrilla property currently estimated by SSR Mining to be valued at up to $57 million. Total consideration paid included 8.57738 million shares of Endeavour Silver issued on July 6, 2022. Any cash component will be satisfied with cash on hand. As per transaction, Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it. The Transaction is expected to be accretive to SSR Mining on an NAV per share basis, based on street consensus estimates. Closing of the Transaction remains subject to TSX and NYSE regulatory approvals and the approval of the Mexican Federal Economic Competition Commission, as well as customary closing conditions for a transaction of this kind and is expected to occur in the first half of 2022. As of January 19, 2022, the transaction has been approved by the board of directors of Endeavour. As of March 15, 2022, Endeavour Silver a $40 million bought-deal financing, the proceeds of which it would use to pay the cash component of its Pitarrilla project acquisition. RBC Capital Markets acted as exclusive financial advisor to SSR Mining while Stikeman Elliott LLP acted as legal counsel. PI Financial acted as Endeavour's financial advisor. Koffman Kalef LLP acted as the Endeavour's legal counsel.
Endeavour Silver Corp. (TSX:EDR) completed the acquisition of Pitarrilla Project in Durango, Mexico from SSR Mining Inc. (TSX:SSRM) on July 6, 2022.
SSR Mining Inc. is a precious metals mining company with four producing assets located in the United States of America (USA), Turkey, Canada, and Argentina, combined with a global pipeline of development and exploration assets in the USA, Turkey, Mexico, Peru, and Canada. Its four operating assets produce more than 700,000 gold-equivalent ounces annually. The Company's gold and silver production is sourced from its Copler Gold Mine (Copler) in Erzincan, Turkey, Marigold mine (Marigold) in Nevada, United States, Seabee Gold Operation (Seabee) in Saskatchewan, Canada and Puna Operations (Puna) in Jujuy, Argentina. The Company's growth and development pipeline includes Cakmaktepe Extension and Copper Hill in Turkey, New Millennium, Trenton Canyon and Buffalo Valley in Nevada, and the Fisher and Amisk properties in Saskatchewan, along with a number of earlier-stage opportunities globally. Amisk property is 39,880 hectares with extensive Proterozoic-volcano-sedimentary rock assemblages.