Endeavour Silver has also agreed to spend a minimum of US$10m in exploration expenditures on the Pitarrilla project over a five-year period
Pitarrilla is a silver, lead, and zinc project in Mexico. (Credit: Khusen Rustamov from Pixabay)
Canada-based SSR Mining has signed an agreement with Endeavour Silver to sell its Pitarrilla project for a total consideration of $127m.
Located in the State of Durango, Mexico, Pitarrilla is a silver, lead, and zinc project.
The consideration includes $35m in cash, $35m in Endeavour Silver shares and a 1.25% net smelter return royalty on the Pitarrilla property currently estimated to be worth up to $57m.
Endeavour Silver has also agreed to spend a minimum of US$10m in exploration expenditures on the Pitarrilla project over a five-year period, upon completion of the transaction.
SSR Mining will own nearly 5% of the outstanding shares of Endeavour Silver.
The completion of the transaction is subject to TSX and NYSE regulatory approvals and the approval of the Mexican Federal Economic Competition Commission. It is expected to be closed in the first half of 2022.
SSR Mining said: “With this transaction, SSR Mining continues to deliver on its goal of portfolio rationalization, realizing value for shareholders by monetizing non-core assets.
“Together with the sale of our non-core royalty portfolio in the third quarter of 2021 and ongoing rationalization of non-core equity positions, SSR Mining has realized in excess of US$235 million in aggregate consideration over the past 7 months.”
Endeavour Silver is a precious metals mining firm that operates two high-grade, underground, silver-gold mines in Mexico. Currently, it is advancing the Terronera mine project towards a development decision.
The company is also exploring its portfolio of exploration and development projects in Mexico, Chile and the US.
In December 2020, Endeavour Silver agreed to El Cubo Mine and related assets to VanGold Mining. El Cubo is an underground gold-silver mine located in El Cubo village in Guanajuato city in Mexico.