Endeavour Silver - Endeavour Silver Signs Definitive Agreement to Sell the El Cubo Mine in Guanajuato, Mexico to VanGold Mining;Â Endeavour to be Added to the S&P/TSX Composite and NYSE Arca Gold Miners (GDX ETF) Indices
VANCOUVER, British Columbia, March 17, 2021 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) (“Endeavourâ€) announces that it has signed a definitive agreement to sell the El Cubo mine in Guanajuato, Mexico to VanGold Mining Corp. (“VanGoldâ€) for $15 million in cash and share payments plus up to $3 million in contingent payments (all dollar amounts in USD unless otherwise noted).
VanGold will pay $15,000,000 to Endeavour as follows:
- A non-refundable down-payment of $500,000 cash (received).
- $7.0 million cash payment on closing, anticipated by the end of March 2021.
- $5.0 million in VanGold common shares on closing, priced at $0.2344 (CAD$0.30) per share for a total of 21,331,058 VanGold shares representing approximately 11.3% of the issued shares.
- $2.5 million promissory note due 12 months from the closing date.
- Endeavour has agreed to (a) abstain from voting its shares of VanGold, other than as recommended by VanGold’s management, for a period of two years from the closing date and (b) a 12-month restriction on the resale of any VanGold shares acquired in this transaction.
- VanGold has also agreed to pay Endeavour up to an additional $3.0 million in contingent payments based on the following:
- $1.0 million upon VanGold producing 3,000,000 silver equivalent ounces at El Cubo mill, derived from either the El Cubo or El Pinguico project.
- $1.0 million if the price of gold closes at or above $2,000 per ounce for 20 consecutive days within two years after closing.
- $1.0 million if the price of gold closes at or above $2,200 per ounce for 20 consecutive days within three years after closing.
- Endeavour also announces its common shares will be be added to the S&P/TSX Composite and the NYSE Arca Gold Miners (GDX ETF) Indices effective after market close on Friday March 19, 2021, as per their respective Q1, 2021 rebalances, as announced on Friday March 12, 2021.
