Endeavour Silver upsizes offering to $45 million amid strong demand

VANCOUVER - Endeavour Silver Corp. (NYSE: EXK; TSX: EDR), a mid-tier precious metals mining company whose stock has surged over 70% in the past year, has announced an upsized bought deal of common shares due to significant investor demand. According to InvestingPro analysis, the company’s shares are currently trading below their Fair Value, with analysts setting price targets ranging from $5.00 to $7.25. The company has entered an agreement with a syndicate of underwriters, led by BMO Capital Markets, to purchase 11.6 million shares at $3.88 each, aiming to raise approximately $45 million. The company maintains a healthy financial position with a current ratio of 2.0, indicating strong liquidity to meet short-term obligations.

The underwriters also have an over-allotment option to buy additional shares worth up to $5 million, exercisable within 30 days post-closing. This offering is part of Endeavour’s strategy to fund the acquisition of Compañia Minera Kolpa S.A. and its primary asset, the Huachocolpa Uno Mine, for a total consideration of $145 million.

The transaction is subject to customary closing conditions, including regulatory approvals. If the acquisition does not proceed, Endeavour retains discretion over the use of the net proceeds.

Shares are being offered in Canada, excluding Quebec, under a short form base shelf prospectus and in the U.S. through a prospectus supplement to a registration statement on Form F-10. Additionally, shares may be offered in certain jurisdictions outside Canada and the U.S. through private placements.

Endeavour has filed a preliminary prospectus supplement with the U.S. Securities and Exchange Commission, which is available on EDGAR. The base shelf prospectus and prospectus supplement will be accessible on SEDAR+ within two business days.

Prospective investors are encouraged to read these documents for a more comprehensive understanding of the offering and associated risks. Copies may be obtained from BMO Nesbitt Burns Inc. in Canada and BMO Capital Markets Corp. in the U.S.

The company has also filed a Current Technical Report, which includes a Historical Estimate of the Kolpa mine’s resources. However, this estimate is not currently treated as a resource and requires additional work to be classified as such under NI 43-101 guidelines.

Endeavour Silver, with a commitment to sustainable mining practices, operates in Mexico and is developing a new cornerstone mine in Jalisco state. The company also has a portfolio of exploration projects in Mexico, Chile, and the United States. With revenue growth of nearly 6% in the last twelve months and analysts expecting significant sales growth this year, the company shows promising potential. For deeper insights into Endeavour Silver’s financial health and growth prospects, including 12 additional exclusive ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

This news article is based on a press release statement from Endeavour Silver Corp.

In other recent news, Endeavour Silver Corp. reported fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings of $0.02 per share, contrasting with the anticipated loss of $0.01 per share. The company generated $42.2 million in revenue for the quarter, although this was below the consensus estimate of $48.62 million. For the full year 2024, Endeavour Silver achieved $217.6 million in revenue, marking a 6% increase from the previous year, despite a net loss of $31.5 million. The company attributed the revenue growth to higher realized gold and silver prices, even as production experienced declines.

Endeavour Silver announced its acquisition of Minera Kolpa in Peru, valued at $145 million, which is expected to enhance its production by roughly five million silver equivalent ounces in 2024. The acquisition will be financed through a combination of cash, common shares, and contingent payments. Additionally, Raymond James initiated coverage on Endeavour Silver with an Outperform rating, citing the company’s growth prospects and the anticipated commissioning of the Terronera Project in 2025.

H.C. Wainwright maintained a Buy rating on Endeavour Silver, raising the price target to $7.25, based on updated financial models and the company’s robust cash position of $106.4 million. The company also filed a technical report on the Huachocolpa Uno Mine with the SEC, demonstrating its commitment to transparency and regulatory compliance. These developments reflect Endeavour Silver’s strategic focus on expanding its operations and enhancing production capabilities.

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