Endeavour Silver to acquire Minera Kolpa for $145 million

VANCOUVER - Endeavour Silver Corp. (NYSE: EXK; TSX: EDR), a mid-tier precious metals company with a market capitalization of $1.12 billion and impressive year-to-date returns of 16.5%, has entered into an agreement to purchase all outstanding shares of Compañia Minera Kolpa S.A., including the Huachocolpa Uno Mine, from Arias Resource Capital Management and Grupo Raffo affiliates for $145 million, with an additional $10 million in contingent payments. According to InvestingPro analysis, the company operates with moderate debt levels and has shown strong momentum with an 81.7% return over the past year.

The purchase price consists of $80 million in cash and $65 million in Endeavour common shares. The company will also take on approximately $20 million in net debt from Minera Kolpa. With a current ratio of 2.0 and an Altman Z-Score of 4.52 indicating financial stability, the cash portion will be funded through a new copper purchase agreement, a bought deal financing of shares, and existing cash reserves. For deeper insights into Endeavour’s financial health and more exclusive metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

Minera Kolpa, located in Huancavelica, Peru, is a silver-focused polymetallic mining company with a production capacity of 1,800 tonnes per day, which is expected to increase to 2,500 tonnes per day. In 2024, the mine produced roughly 2 million ounces of silver and significant quantities of lead, zinc, and copper.

Dan Dickson, CEO of Endeavour, emphasized that the acquisition aligns with the company’s goal to become a senior silver producer and will boost production by approximately 5 million silver equivalent ounces based on 2024’s output. The transaction is expected to close within 60 days, subject to regulatory approvals.

To fund part of the cash consideration, Endeavour and Versamet Royalties Corporation have agreed to a copper purchase agreement. Versamet will prepay $35 million to Endeavour and commit to purchasing a percentage of copper produced from the Huachocolpa Uno Mine.

Furthermore, Endeavour has initiated a bought deal financing of approximately $40 million through a syndicate of underwriters led by BMO Capital Markets. The offering may include an over-allotment option of up to 15% of the shares sold.

The company will host a conference call and webcast today at 10:00 a.m. Pacific Time to discuss the transaction. The technical report on the Huachocolpa Uno Mine, prepared in accordance with NI 43-101, contains a historical mineral resource estimate and is available on SEDAR+ and EDGAR.

This transaction is based on a press release statement and contains forward-looking information. Prospective investors are advised to read the prospectus supplements and other company filings for more complete details, especially concerning risk factors. Analysts maintain a positive outlook on Endeavour, with InvestingPro data showing expectations of profitability in the current fiscal year, despite recent challenges in free cash flow generation.

In other recent news, Endeavor Group Holdings has been acquired by Silver Lake, marking a significant transaction in the media and entertainment sector. The acquisition, valued at $25 billion, was finalized at $27.50 per share, resulting in Endeavor’s Class A common stock being delisted from the New York Stock Exchange. Additionally, Endeavor Group has expanded its credit facility to $3 billion, as disclosed in a recent SEC filing, providing the company with increased financial flexibility. In a separate development, OpenBet, previously owned by Endeavor, completed its sale to OB Global Holdings LLC in a management buyout backed by Ariel Emanuel. Furthermore, Sportradar Group AG has agreed to acquire IMG ARENA from Endeavor, enhancing its sports betting portfolio with rights to major events across multiple sports. This acquisition is expected to close in the fourth quarter of 2025, pending regulatory approval. These recent developments indicate strategic moves by Endeavor and its stakeholders in the rapidly evolving sports and entertainment landscape.

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