Endeavour Silver closes sale of El Cubo Mine

VanGold paid US$15 million to Endeavour as follows:

• US$7.5 million cash on closing.
• US$5 million (CAN$6 399 317.40) in VanGold common shares (VanGold shares) on closing, priced at US$0.2344 (CAN$0.30) per VanGold share for a total of 21 331 058 VanGold shares (consideration shares) representing approximately 10.9% of the issued and outstanding VanGold shares.
• US$2.5 million promissory note due 12 months from closing.

VanGold has also agreed to pay Endeavour up to an additional US$3 million in contingent payments based on the following:

• US$1 million upon VanGold producing 3 million silver equivalent oz from the El Cubo mill, derived from either the El Cubo or El Pinguico project, US$500 000 of which may, in VanGold’s discretion, be paid in VanGold shares.
• US$1 million if the price of gold closes at or above US$2000/oz for 20 consecutive trading days within 2 years after the closing date of the transaction.
• A further US$1 million if the price of gold closes at or above US$2200/oz for 20 consecutive trading days within 3 years after the closing date of the transaction.

Bradford Cooke, Endeavour CEO and Director, commented: “We are pleased to close this transaction and I congratulate VanGold for helping make it a win-win deal for both companies. They are in the best position to create more value out of the El Cubo assets given their emerging El Pinguico project located very close to El Cubo, and we now become the largest shareholder of VanGold. I look forward to supporting VanGold in their efforts to become the next junior silver-gold producer in Mexico.”

On the closing of the transaction, Endeavour acquired 21 331 058 VanGold shares. Based on 194 931 838 VanGold shares outstanding as of the closing date of the transaction, the consideration shares represent 10.9% of the outstanding VanGold shares on an undiluted basis. Prior to the closing date of the transaction, Endeavour did not own any VanGold shares or other securities of VanGold. Endeavour has agreed to abstain from voting its shares of VanGold, other than as recommended by VanGold’s management, for a period of 2 years, and to a 12-month restriction on the resale of any VanGold shares acquired in this transaction.

Endeavour acquired its interest in the consideration shares for long term investment purposes and will continue to monitor the business, prospects, financial condition and potential capital requirements of VanGold. Endeavour may acquire additional securities of VanGold including on the open market or through private acquisitions or sell securities of VanGold including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Read the article online at: https://www.globalminingreview.com/finance-business/13042021/endeavour-silver-closes-sale-of-el-cubo-mine/