SSR Mining Inc. has agreed to sell its Pitarrilla project in Durango, Mexico, to Endeavour Silver Corp. for total consideration of up to US$127 million. This consists of US$35 million in cash, US$35 million in Endeavour Silver shares, and a 1.25% net smelter return royalty on the Pitarrilla property currently estimated by SSR Mining to be valued at up to US$57 million.
Endeavour Silver has also committed to spend a minimum of US$10 million in exploration expenditures on the silver, lead, zinc project over five years.
The cash and equity components of the consideration totaling US$70 million will be paid upon closing of the transaction. On closing, SSR Mining will hold approximately 5% of the outstanding shares of Endeavour Silver, which will be subject to a hold period of four months and one day following the date of closing.
The closing of the transaction is expected to occur in the first half of 2022.
Together with the sale of SSR’s non-core royalty portfolio in the third quarter of 2021 and ongoing rationalization of non-core equity positions, the company has realized in excess of US$235 million in aggregate consideration over the past seven months.
