Endeavour Silver Corp. completed the sale of its Bolañitos silver‑and‑gold mine to Guanajuato Silver Company on January 15 2026. The transaction closed for $40 million in consideration, consisting of $30 million in cash and $10 million in Guanajuato shares priced at $0.2709413 per share. Two additional contingent payments of $5 million each—50 % cash and 50 % shares—will be triggered when the mine produces 2 million and 4 million silver‑equivalent ounces, respectively. The share portion of each contingent payment will be issued at the higher of the 10‑day VWAP or the TSX Venture Exchange minimum price, with Guanajuato covering any shortfall if the share price falls below that minimum. The contingent shares are capped so that Endeavour’s ownership of Guanajuato does not exceed 9.9 % of the company’s outstanding shares.
The sale removes a high‑cost, mature asset that has been part of Endeavour’s portfolio since 2007. By divesting Bolañitos, the company frees up capital and reduces its operational footprint, allowing management to concentrate resources on lower‑cost, higher‑grade projects such as the Terronera mine—now in commercial production—and the advanced‑stage Pitarrilla development, which is slated for a feasibility study in the first quarter of 2026.
The $40 million cash inflow, coupled with the potential $10 million in contingent payments, strengthens Endeavour’s balance sheet and provides a clean, immediate liquidity boost. The transaction also eliminates the royalty and third‑party ore burdens that have weighed on the company’s margins, positioning Endeavour to pursue its growth strategy with greater financial flexibility.
Dan Dickson, Endeavour’s CEO, said the sale “marks an exciting milestone as we focus our resources on core silver assets and strategic growth.” He added that Guanajuato is well‑positioned to develop Bolañitos and that the partnership will benefit both companies.
Investors reacted positively to the transaction, citing disciplined capital allocation and the de‑risking of the company’s funding plan for future growth projects. The sale signals a strategic shift toward a leaner, growth‑oriented portfolio, which is expected to improve operational efficiency and long‑term profitability for shareholders.
The transaction is part of Endeavour’s broader strategy to transition from a mid‑tier producer to an intermediate‑tier producer. By concentrating on lower‑cost, higher‑grade assets and advancing its development pipeline, the company aims to generate higher returns and create sustainable value for investors.
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