Endeavour Silver has signed a definitive share purchase agreement to acquire Compañia Minera Kolpa (Minera Kolpa) and its primary asset, the Huachocolpa Uno Mine (Kolpa), in Peru from its shareholders, in a deal valued at $145m (C$207.41m).
The acquisition marks Endeavour Silver’s third producing mine and its first in Peru.
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Under the terms of the agreement, Endeavour Silver will pay $80m in cash and issue $65m in common shares to Minera Kolpa’s shareholders, who are affiliates of Arias Resource Capital Management and Grupo Raffo.
Additionally, Endeavour has agreed to pay up to $10m in contingent cash payments based on certain conditions. It will also assume approximately $20m in net debt from Minera Kolpa.
The transaction will be funded using proceeds from a new copper purchase agreement signed with Versamet Royalties Corporation, a bought deal financing of shares and existing cash reserves.
As per the copper purchase agreement, Versamet will pay upfront cash of $35m to acquire a copper stream at Kolpa.
Endeavour has also signed an agreement with a syndicate of underwriters, led by BMO Capital Markets, for a bought deal offering of 10,320,000 shares at a price of $3.88 per share, raising gross proceeds of approximately $40m.
Minera Kolpa is a silver-focused polymetallic mining company with operations in the Huachocolpa and Santa Ana districts of Huancavelica.
The company, directly or indirectly, owns mining rights to 143 mining concessions. It also holds claims covering 25,177ha and one beneficiation concession that covers 366ha.
The Kolpa mine has mineral deposits rich in silver, lead, zinc and copper.
In 2024, the mine produced approximately two million ounces (moz) of silver, 19,820 tonnes (t) of lead, 12,554t of zinc, and 518t of copper, equating to around 5.1moz of silver equivalent.
The addition of Kolpa is expected to boost Endeavour’s production profile by approximately 5moz of silver equivalent (AgEq oz), based on 2024’s production figures.
Endeavour CEO Dan Dickson said: “Today marks a significant milestone in Endeavour’s journey to becoming a senior silver producer. The acquisition of the Kolpa mine represents a material increase to our AgEq oz production and is a testament to our team’s dedication and vision and is not only about expanding our production portfolio; it’s a strategic step toward shaping a stronger, more dynamic future for the company.”
Endeavour expects the deal to provide a platform for further potential acquisitions in a region known for its extensive mining operations and prospective geology.
Subject to Toronto Stock Exchange (TSX) and NYSE regulatory approvals, as well as customary closing conditions, the deal is due to close within 60 days.
In November 2024, Endeavour Silver announced a bought-deal offering of 15,825,000 common shares at a price of $4.60 each, raising approximately $73m to fund the advancement of its Pitarrilla project in Mexico.
