Endeavour Silver Corp (NYSE:EXK) reported closing of the deal of a 100% stake in the Parral assets from Silver Standard Resources Inc. These assets are based in the silver mining region of Hidalgo de Parral in Mexico. The assets cover 3,432 hectares, are reachable by paved highway, and comprise large veins visible for eight km. Particulars of the acquisition were reported by PR dated September 14, 2016.
Under the terms of the deal, Endeavour has issued approximately 1.198 million common shares to Silver Standard. It has accepted to spend $2 million on exploration in the coming 2-year period after the closing date. On closing this exploration expenditure, the company will have 1-year to offer a National Instrument 43-101 technical report, covering a resource projection.
It can issue an additional $200,000 in common shares for each 1 million ounces of silver outlined in indicated and measured resources on the La Palmilla and San Patricio assets, depending on the 10-day average closing price of EXK’s common shares on the NYSE. It should be done either before the delivery of the ‘NI 43-101’ report or the third anniversary of the preliminary closing date under the deal, whichever is earlier.
Endeavour Silver reported that it continues to define silver-gold vein mineralization at its Terronera asset in Mexico. Luis Castro, who is Vice President of Exploration, reported that these in-fill drill report continues to validate silver-gold mineralization compared to considerable true widths in its Terronera vein. He added that the deposit is open for expansion at depth, and they have high priority drill objectives identified in many other mineralized, subparallel veins in the Terronera vein.
Endeavour Silver added that 3 drill rigs are presently working on the Terronera asset for step-out drilling in the Terronera vein. The company utilized a cut-off date of June 30 drill report so as to update the resource projection and facilitate economic analysis and mine engineering for the pre-feasibility trial now underway. Endeavour’s COO and President reviewed and validated this news release and administered the drilling plans in Mexico.