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Endeavour Silver Corp. EXK announced that it has entered into a bought-deal agreement to offer 15,825,000 common shares for $4.60 per share to a syndicate of underwriters led by BMO Capital Markets. This move will help Endeavour Silver raise approximately $73 million toward the advancement of its Pitarrilla project in Mexico.
The offering is expected to close around Nov. 27, 2024, subject to regulatory approvals. The underwriters have a 30-day option to buy an additional 10% of shares to cover over allotments.
Details of Endeavour Silver’s Pitarrilla Project
Pitarrilla is a large undeveloped silver, lead and zinc project that comprises 4,950 hectares across five concessions. The property is located 160 kilometers north of Durango City in northern Mexico.
It has significant infrastructure in place, with direct access to utilities. Pitarrilla has secured necessary permits for underground mining and development, including water use, explosives, land use and environmental approvals.
Since acquiring the project in July 2022, Endeavour Silver has re-logged the historic drill core, refurbished an existing underground ramp and extended it over 1.3 kilometers to test high-grade feeder structures.
On Nov. 13, 2024, Endeavour Silver announced that it made substantial progress at its 100% owned Pitarrilla project, boosting its understanding of the deposit's geology and mineralization controls. The progress made at Pitarrilla underscores Endeavour Silver's potential to create significant shareholder value.
EXK’s Discoveries From the Exploration
Endeavour Silver has refurbished an existing underground ramp and extended it over 1.3 kilometers, confirming the presence of at least four high-grade feeder structures, including the Palmito, Danna, Victoria and Casas Blancas veins.
During the development of the ramp, the company identified additional mineralized structures like the Norma vein and the Pena dike.
EXK has drilled nine diamond drill holes since August 2024, including six from the surface and three from underground drill stations. All holes successfully encountered the target deposit, confirming management's geological interpretation and the viability of underground bulk tonnage mining.
Endeavour Silver’s Q3 Results
The company produced 1.6 million silver equivalent ounces in the third quarter of 2024, a 14% decline from the year-ago quarter due to reduced silver production at its mines, which offset higher gold output.
The consolidated silver production fell 24% year over year to 874,717 million ounces. Endeavour Silver, however, witnessed a 2% year-over-year improvement in gold production at 9,290 ounces.
The company reported adjusted earnings per share of 1 cent, beating the Zacks Consensus Estimate of break-even earnings. The company had incurred an adjusted loss of 4 cents in the year-ago quarter.
The top line grew 8.2% year over year to $53 million in the third quarter of 2024. However, the metric missed the Zacks Consensus Estimate of $55 million.