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Mining News January 17, 2022 11:30:06 PM

Endeavour Silver to Acquire Mexican Mine from SSR Mining

Paul Ploumis
ScrapMonster Author
The transaction is part of SSR’s strategic plan to monetize non-core assets.

Endeavour Silver to Acquire Mexican Mine from SSR Mining

SEATTLE (Scrap Monster): Endeavour Silver Announced its decision to acquire Pitarrilla silver-lead-zinc project in northern Mexico from SSR Mining. The cash and share deal is valued at $70 million- $35 million in cash and the balance $35 million worth of shares. The two companies had initiated talks on acquisition during the fourth quarter of 2021.

Upon closing of the deal, SSR will own around 5% of Endeavour. Also, SSR will receive 1.25% net smelter return royalty, which is currently worth approximately $57 million, said the press release.

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The transaction is part of SSR’s strategic plan to monetize non-core assets. The company has realized over $235 million in sale of non-core portfolio and rationalization of non-core equity positions over the past seven months.

Meantime, Endeavour Silver has committed to spend at least $10 million towards further exploration works at Pitarrilla over the next five year period from the closing of the transaction. The acquisition accelerates the company’s vision to become a premier senior silver producer, said Dan Dickson, CEO. The mine is expected to take priority over the company’s other projects, he added.

Incidentally, Pitarrilla is one of the world’s largest undeveloped silver projects.

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