Pitarrilla is a large undeveloped silver, lead, and zinc project located 160 kilometres north of Durango City, in northern Mexico. The Pitarrilla property consists of 4,950 hectares across five concessions and has significant infrastructure in place with direct access to utilities.
“The acquisition of Pitarrilla, one of the world’s largest undeveloped silver projects1, accelerates our vision to become a premier senior silver producer,” said
Total Consideration
Total consideration payable on closing of the Transaction is
Any cash component will be satisfied with cash on hand. As at
Strategic Rationale for Acquisition
- Acquiring One of the World’s Largest Undeveloped Silver Projects
- As outlined in the 2012 Technical Report and updated in the
SSR Mining 2020 AIF, Pitarrilla has the following mineral resource estimate which Endeavour is treating as a Historical Estimate3:- a measured & indicated mineral resource (open-pit and underground) of 525.27 million ounces (oz) silver (Ag) in 164.79 million tonnes grading 99.1 grams per tonne (gpt) Ag.
- an open-pit inferred mineral resource of 21.21 million oz Ag in 8.52 million tonnes at an average grade of 77.4 gpt and underground inferred mineral resource of 5.46 million oz Ag in 1.23 million tonnes at a grade of 138.1 gpt.
- By way of comparison,
Endeavour Silver has the following mineral reserve and resource estimates4 as outlined in its Annual Information Form for the year endedDecember 31, 2020 :- a proven and probable mineral reserve of 86.3 million oz silver equivalent (AgEq) from 6.99 million tonnes at 380 gpt AgEq.
- a measured & indicated mineral resource of 43.7 million oz AgEq in 4.40 million tonnes at an average grade of 309 gpt AgEq.
- an inferred mineral resource of 87.13 million oz AgEq in 8.04 million tonnes at an average grade of 337 gpt AgEq.
- As outlined in the 2012 Technical Report and updated in the
- Pitarrilla Leverages Endeavour’s Platform and Experience in
Mining-Friendly Mexico - Acquisition is an excellent fit for Endeavour’s experienced regional team, which has a successful development, exploration and underground mining track record.
- Accretive Acquisition at an Attractive Valuation
- Once a current resource is defined, Pitarrilla is expected to be substantially accretive on a silver equivalent resource per share metric -- anticipate announcing a current resource in 2022.
- Endeavour expects to maintain significant silver exposure, silver beta and trading multiples.
- Pitarrilla provides additional optionality in a rising silver price environment.
- Enhances Endeavour’s Attractive Growth Pipeline
- Pitarrilla, together with Endeavour’s Terronera and Parral projects, form the key cornerstones of Endeavour’s mid to long-term growth profile.
- Over the next several years, analyze the economics of various scales of production, including underground option, and then advance towards potential development and production to strengthen Endeavour’s long-term production and free cash flow profile.
- Currently categorized as a development asset, Pitarrilla has been de-risked by
SSR Mining as follows:- several key exploration and mining permits have been obtained; and
- collaboration agreements are in place with the local community.
- Potential Exploration Upside as Land Package Remains Largely Underexplored
- Deposit remains open with minimal drilling completed to explore the deposit at depth.
- Significant underexplored land package with an opportunity to make new discoveries.
- The geology at Pitarrilla and at Endeavour’s underground mines –
Guanacevi and Bolanitos – is broadly similar. - Upside potential from upper oxide resource as well as open-pit and underground optionality.
Approvals and Timing
The Transaction has been approved by the board of directors of Endeavour.
Closing of the Transaction remains subject to TSX and NYSE regulatory approvals and receipt of
On closing, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.
Advisors and Counsel
PI Financial acted as Endeavour’s financial advisor.
Conference Call and Webcast
Management will host a live conference call and audio webcast later today to discuss the highlights of the Transaction as follows:
Date & Time: | |
Telephone: | Toll-free in |
Local or International +1-604-638-5340 | |
Please allow 10 minutes to be connected to the conference call. | |
Webcast: | Pitarrilla Acquisition Webcast |
Replay: | A replay of the conference call will be available by dialing +1-800-319-6413 in |
Note: | A slide presentation will be available for download at www.edrsilver.com in advance of the call. |
Endeavour Qualified Person and QA/QC
The scientific and technical data contained in this news release relating to the Pitarrilla project has been reviewed and approved by
About
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Contact Information
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@edrsilver.com
Website: www.edrsilver.com
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Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of
Forward-looking statements are based on assumptions management believes to be reasonable including, but not limited to, the ability to obtain regulatory approvals required for completion of the Transaction, the reliability of mineral resource estimate, the continuation of exploration and mining operations, no material adverse change in the market price of commodities, mining operations and production will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the inability or failure of the Company or
Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Endeavour cannot be certain that actual results will be consistent with such forward-looking information. As a result, the Company cannot guarantee that the Transaction will be completed on the terms and within the time disclosed herein or at all.
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1 One of the world’s largest undeveloped silver deposits is based on publicly filed data available on
2 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and the
3 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and SSR Mining’s 2020 AIF, which are available at www.ssrmining.com and on SEDAR at www.sedar.com. The economic analysis presented in the 2012 Technical Report is not considered current and is not being relied upon by Endeavour and should not be considered as representing the expected economic outcome under Endeavour’s ownership. A qualified person has not done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves. The Company is not treating this information as current mineral resources or reserves, has not verified this information and is not relying on it. Following closing of the Transaction, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.
4 For more information regarding Endeavour’s mineral reserve and mineral resource estimates and related notes, please refer to the Company’s annual information form for the year ended
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