15 Sep Endeavour Silver to acquire Mexico exploration properties from Silver Standard
Endeavour Silver (NYSE: EXK) has entered into an agreement with Silver Standard Resources (NASDAQ: SSRI) to acquire a 100% interest in Silver Standard’s Parral properties located in the historic silver mining district of Hidalgo de Parral in the state of Chihuahua, Mexico.
The properties total 3,432 hectares and are subject to 1% NST production royalties.
According to the Mexican Geological Survey, historic production in this region is approximately 250 ounces of silver.
Paul Benson, Silver Standard CEO and President said: “The sale of these non-core properties demonstrates our focus on optimizing the portfolio and maximizing value from all of our assets.
He said: “Through this transaction, we retain exposure to the success of the properties and, importantly, we are enabled to redirect capital elsewhere in our portfolio to continue generating value for our shareholders.”
Endeavour will pay US$6 million in Endeavour common shares and committed to spending $2 million on exploration on the San Patricio and La Palmilla properties over the two-year period following the closing of the deal.
Bradford Cooke, Endeavour CEO commented: “We are pleased to add another high-quality silver exploration property to our project pipeline. Parral should be an accretive acquisition pursuant to our five-year strategic plan to become a premier senior producer, with potential for exploration discoveries, district acquisitions, near-term production, and organic growth.”