Endeavour Silver secures $15 million increase to Terronera debt facility

VANCOUVER - Endeavour Silver Corp. (NYSE:EXK; TSX:EDR), a $1.38 billion market cap silver mining company, announced Tuesday it has amended its senior secured debt facility for the Terronera Project in Mexico, increasing the principal amount by $15 million to a total of $135 million. According to InvestingPro analysis, the stock appears fairly valued at its current price of $4.77.

The company’s wholly-owned subsidiary, Terronera Precious Metals, S.A. de C.V., revised the credit facility originally announced in October 2023. ING Capital LLC and Societe Generale are acting as Joint Lead Arrangers for the financing. The company maintains a manageable debt profile with a total debt-to-capital ratio of 0.08 and a current ratio of 1.14.

Proceeds will fund the completion of commissioning activities at the Terronera Project in Jalisco state and provide general working capital. The company reported that commissioning activities are proceeding according to plan and align with management’s expectations.

As a condition of the funding and risk management strategy, Terronera has implemented zero-cost collars to partially manage silver price exposure over the next twelve months. This hedging program protects against downside risk at $31.00 per ounce while allowing participation in price appreciation up to $42.00 per ounce for approximately 968,000 silver ounces. With a beta of 2.1, this risk management approach is particularly important for the volatile silver mining sector.

Endeavour Silver describes itself as a mid-tier precious metals company with operations in Mexico and Peru, with the Terronera mine representing a cornerstone development project. The company also maintains exploration projects in Mexico, Chile, and the United States. The stock has shown strong momentum with a 24.29% year-to-date return. For detailed analysis and more insights, access the comprehensive Pro Research Report available on InvestingPro.

The information in this article is based on a press release statement from Endeavour Silver Corp.

In other recent news, Endeavour Silver Corp. has agreed to acquire Compañia Minera Kolpa S.A. for $145 million, with an additional $10 million in contingent payments. The acquisition includes the Huachocolpa Uno Mine in Peru, expected to enhance Endeavour’s production capacity significantly. The transaction is set to close within 60 days, pending regulatory approvals. Additionally, at Endeavour Silver’s Annual General Meeting, shareholders approved all proposed items, including the re-election of board members and the re-appointment of KPMG LLP as the company’s auditor. The meeting also marked the retirement of long-serving board member Ricardo Campoy.

Meanwhile, Silver Lake has completed its acquisition of Endeavor Group Holdings, Inc. for $27.50 per share, marking the largest private equity take-private deal in the media and entertainment sector. This acquisition will see Endeavor’s Class A common stock delisted from the New York Stock Exchange. OpenBet, previously owned by Endeavor Group Holdings, has finalized its sale to OB Global Holdings LLC in a management buyout. This transaction involves participation from OpenBet executives and is backed by Ariel Emanuel. OpenBet continues to expand its global presence, particularly in Brazil, and remains a key player in the betting and gaming entertainment industry.

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