Endeavour Silver Completes Kolpa Acquisition
Deal News | May 01, 2025 | Globenewswire
Endeavour Silver Corp., a mid-tier precious metals company, has completed its acquisition of Compaia Minera Kolpa S.A., including the Huachocolpa Uno Mine, for $145 million. The acquisition involves $80 million in cash and $65 million in Endeavour common shares, with an additional contingent payment of up to $10 million possible. The deal also includes taking on $20 million in net debt. The funding for the acquisition comprises a $35 million copper stream from Versamet Royalties Corporation and a $50 million equity financing. Minera Kolpa, located in Peru, has been a long-standing silver mining operation with plans to expand production capacity and explore further resource potential. Endeavour Silver, with operations in Mexico and Peru, aims to expand its presence as a senior silver producer with sustainable mining initiatives. The company emphasizes responsible mining practices and plans ongoing exploration programs.
Sectors
- Mining
- Precious Metals
Geography
- Peru – The acquisition centers on Minera Kolpa, a significant silver mining operation located in Peru.
- Canada – Endeavour Silver Corp., the acquiring company, is headquartered in Vancouver, British Columbia, Canada.
Industry
- Mining – The article focuses on the acquisition of a mining company, Minera Kolpa, which is involved in silver, lead, zinc, and copper extraction.
- Precious Metals – Endeavour Silver is a company engaged in the production of precious metals, primarily silver, and is expanding its operations through this acquisition.
Financials
- $145 million – Total consideration for the acquisition of Compaia Minera Kolpa S.A.
- $80 million – Amount payable in cash for the acquisition.
- $65 million – Amount payable in common shares of Endeavour upon closing the acquisition.
- $10 million – Additional contingent payment possible upon the occurrence of certain events.
- $20 million – Net debt included in the acquisition that remains outstanding and repayable by Minera Kolpa.
- $35 million – Copper stream deal with Versamet Royalties Corporation to fund the cash component of the acquisition.
- $50 million – Bought deal equity financing previously announced to help fund the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Endeavour Silver Corp. | Acquirer | Company | A mid-tier precious metals mining company focused on silver and gold production. The company is actively seeking to expand its operations and become a senior silver producer. |
| Compaia Minera Kolpa S.A. | Target Company | Company | A silver-focused mining operation in Peru, known for its significant production capacity and ongoing exploration potential. |
| Arias Resource Capital Management | Former Shareholder | Company | One of the affiliates involved in selling Minera Kolpa to Endeavour Silver Corp. |
| Grupo Raffo | Former Shareholder | Company | Another affiliate involved in selling Minera Kolpa to Endeavour Silver Corp. |
| Versamet Royalties Corporation | Financial Advisor | Company | Provided a $35 million copper stream deal to help fund the acquisition for Endeavour Silver. |