Endeavour Silver CEO Dan Dickson joined Steve Darling from Proactive to share news that the company's wholly-owned subsidiary, Minera Plata Adelante SA, has successfully closed a royalty sale transaction with Gold Royalty Corp, resulting in total consideration of $7.5 million.
Dickson explained that the royalty sale pertains to two concessions associated with Capstone's Cozamin copper-silver mine, located in Mexico. Under the terms of the sale agreement, Gold Royalty Corp has the option to acquire any additional royalties that may be granted on the five remaining concessions covered by the 2017 concession division agreement.
The proceeds from the royalty sale will be deployed strategically to advance Endeavour Silver's operations. Specifically, the company plans to allocate the capital towards progressing its two high-grade underground silver-gold mines located in Mexico. This includes supporting the ongoing construction and development of the Terronera Project, a key initiative for Endeavour Silver's growth.
The successful closure of the royalty sale not only provides Endeavour Silver with additional capital but also demonstrates the company's commitment to optimizing its portfolio and maximizing the value of its mining assets in Mexico.