11:54 AM EDT, 04/01/2025 (MT Newswires) -- (Updates shares.)

Endeavour Silver ( EXK ) on Tuesday said it signed a definitive agreement to acquire Compania Minera Kolpa and its Huachocolpa Uno mine in Peru for US$145 million in cash and shares.

Endeavour expects the mine to increase its production by about five-million silver equivalent ounces.

"The acquisition of the Kolpa mine represents a material increase to our [silver equivalent] production and is a testament to our team's dedication and vision and is not only about expanding our production portfolio; it's a strategic step toward shaping a stronger, more dynamic future for the company," said chief executive Dan Dickson.

The price paid includes US$80 million in cash and US$65 million in shares, Endeavour said. The miner also agreed to pay up to an additional US$10 million in contingent payments. As part of the transaction, Minera Kolpa's net debt of about US$20 million at the end of 2024 will remain outstanding.

Endeavour said the cash part of the deal will be funded through a combination of net proceeds from a new copper stream on the mine, a US$40 million bought deal financing, and cash on hand.

Endeavour shares were last seen down $0.805 to $5.335 on the Toronto Stock Exchange.

Price: 5.33, Change: -0.81, Percent Change: -13.19