El Salvador lawmakers overturn mining ban Bukele called absurd
El Salvador became the first country in the world to ban all forms of metals mining in 2017.
Endeavour Silver (NYSE: EXK) (TSX: EDR) has agreed to sell its El Cubo mine and related assets to Mexico-focused miner VanGold Mining (TSXV: VGLD).
Endeavour will receive a combination of $7.5 million cash, $5 million in VanGold shares and $2.5 million in unsecured promissory notes, for a total payment of $15 million.
The El Cubo mine, located in Guanajuato, Mexico, includes two previously operating underground mines and a flotation plant. Operations were suspended at the end of November 2019 due to depletion of the mine’s reserves.
According to Endeavour CEO Bradford Cooke, VanGold represents “an ideal fit” to advance the asset, given the proximity of the Pinguico property to the El Cubo plant.
Upon completion of the sale, Endeavour would become VanGold’s largest shareholder, with 16.1% of VanGold’s updated share capital.
VanGold may also pay Endeavour up to $3 million in additional payments contingent on certain production milestones and market conditions.
Upon achieving production of three million silver-equivalent ounces from the El Cubo mill, Endeavour would be required to make a payment of $1 million.
A $1 million payment would be made to VanGold should the price of gold close at or above $2,000/oz for 20 consecutive days within two years after closing. Another $1 million would be paid if gold prices are at or above $2,200/oz for 20 consecutive days within three years.
Shares of Endeavour Silver were up 1.7% by 12:45 p.m. in Toronto. The Vancouver-based miner has a market capitalization of C$913.2 million.
