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Q: Given that Endeavour Silver has minimal debt on its balance sheet and generated significant cash from operations in 2021, why did it issue US$46M in equity in March?

A: Earlier this year, we announced that Endeavour Silver had signed a definitive agreement to acquire the Pitarrilla project from SSR Mining for total consideration of US$70 million – payable half in cash and half in common shares – and a 1.25% net smelter returns royalty. This acquisition, which is expected to close in the first half of 2022, significantly enhances our long-term growth profile.

We plan to use the net proceeds of the recent equity offering to pay the US$35 million cash consideration due and payable upon closing of the acquisition, which is anticipated in Q2 2022. The balance of the proceeds will be used for general corporate purposes and working capital.

While we reported over US$100 million in cash on hand at year end, we raised equity to pay for the Pitarrilla acquisition to ensure our balance sheet remains strong as we secure project financing to embark on the upcoming development of Terronera, our next cornerstone asset.

Dan Dickson added, “We now have a tremendous growth pipeline, which includes the Terronera, Pitarrilla and Parral projects, in Mexico where we have extensive experience and expertise.”

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