Endeavour Silver Secures Major Funding for Acquisition Plans

Endeavour Silver Announces Increased Financing

Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) has made a significant announcement regarding its financing strategy. With substantial interest from investors, the company has opted to increase the amount raised in its previously announced bought deal financing to approximately US$45 million. This bold move mirrors the strong demand for the company's shares, demonstrating the confidence investors have in Endeavour's growth trajectory.

Details of the Offering

Under the agreement with a syndicate of underwriters led by BMO Capital Markets, Endeavour will issue 11,600,000 common shares at a price of US$3.88 each. This structured offering allows the underwriters to purchase additional shares, up to US$5 million in value, if needed, to address over-allotments. This flexibility indicates the robustness of the market interest and the planned usage of the funds.

Funding Allocation

The net proceeds from this fundraising initiative are earmarked to support the acquisition of Compañia Minera Kolpa S.A., particularly its key asset, the Huachocolpa Uno Mine. The total consideration for this purchase is $145 million, and the completion of the transaction hinges on the successful closing of this financing round.

Future Plans

In line with its growth strategy, Endeavour aims to enhance its operational capabilities and expand its footprint in the mining sector. If for any reason the acquisition does not proceed, the company retains the discretion to allocate the proceeds from this offering towards other strategic initiatives.

Overview of the Colpa Mine Evaluation

Endeavour is actively engaged in a detailed evaluation of the Kolpa mine through its recently filed Current Technical Report. This report incorporates a Historical Estimate defined by NI 43-101 and showcases the precautions necessary when interpreting such estimates. While the Historical Estimate provides a foundational insight into mineral resources, the firm is committed to obtaining updated evaluations through verification drilling and new resource assessments.

Technical Insights

The evaluation of mineral resources includes diverse methodologies and tools, including 3D modeling and statistical analysis for sample evaluations. The aim is to derive accurate mineral resource categorizations and financial forecasts based on current market conditions and geological data.

Endeavour Silver’s Commitment to Sustainable Mining

Endeavour Silver is not just focused on expanding its operations; it also aims to uphold sustainable and socially responsible mining practices. Operating primarily in Mexico, the company is dedicated to fostering positive community relations and enhancing opportunities in the regions where it operates.

Future Developments

Alongside the immediate financing and acquisition plans, Endeavour has a robust portfolio of exploration projects across Mexico, Chile, and the United States. These initiatives are designed to position the company as a leading silver producer in the industry.

Contact Information for Investors

For more information, potential investors can reach out to Allison Pettit, the Director of Investor Relations at Endeavour Silver. She can be contacted via email at apettit@edrsilver.com for inquiries related to the financing and the company’s performance.

Frequently Asked Questions

What is the purpose of Endeavour Silver’s recent financing increase?

The financing will primarily be used to fund the acquisition of Compañia Minera Kolpa S.A. and its Huachocolpa Uno Mine.

How many shares are being offered in this financing?

Endeavour is offering 11,600,000 common shares at a price of US$3.88 each.

Who is leading the underwriting for this deal?

The underwriting syndicate is led by BMO Capital Markets.

What are the plans for the net proceeds if the acquisition does not proceed?

If the acquisition doesn’t complete, Endeavour will determine the use of proceeds at its discretion.

What is Endeavour Silver's commitment to sustainability?

The company is dedicated to responsible mining practices and aims to positively impact the communities in which it operates.

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