Endeavour Silver Announces Financing To Fund Pitarrilla Project Purchase
Endeavour Silver (TSX: EDR) is looking to raise funds. The firm last night after the close of markets announced that it had entered an arrangement with BMO Capital Markets and PI Financial for a bought deal financing.
The financing will see the company raise gross proceeds of US$40.0 million via the sale of common shares. A total of 8.1 million common shares are to be sold under the offering, at a price of US$4.95 per share, with no warrant being offered.
An over-allotment option has also been granted, which is valid for a period of thirty days from the close of financing, enabling the underwriters to sell up to an additional 15% of shares.
Proceeds from the financing are primarily to be used to satisfy the funding requirements of the firms purchase of the Pitarrilla project from SSR Mining (TSX: SSRM). Located in the Durango region of Mexico, the property has a measured and indicated resource estimate of 525.27 million ounces of silver at 99.1 g/t. The transaction consists of total consideration of US$127 million, of which US$35 million is to be settled in the form of cash.
The financing is slated to close March 21, 2022.
Endeavour Silver last traded at $6.85 on the TSX.
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