Endeavour Silver To Acquire Compañia Minera Kolpa For $145 Mln, Expands In Peru; Stock Fell

(RTTNews) - Endeavour Silver Corp. (EXK), a mining company, on Tuesday announced that it has signed a definitive agreement to acquire Compañia Minera Kolpa S.A. and the Huachocolpa Uno Mine assets for a total of $145 million.

The silver-focused polymetallic mining company's main assets include the Huachocolpa Uno Mine located in Huancavelica Province, Peru.

The transaction will be $80 million in cash and $65 million in common shares of Endeavour upon closing.

The number of shares issued is based on a price of $4.618 per share.

Endeavour may pay up to an extra $10 million in cash if certain conditions are met. Additionally, about $20 million in net debt will remain with Minera Kolpa which will be outstanding for repayment.

The deal will be funded through proceeds from a new copper purchase agreement with Versamet Royalties Corp, a bought deal financing.

In the pre-market trading, Endeavour Silver is 5.39% lesser at $4.04 on the Nasdaq.