Exploration company VanGold Mining has signed a definitive purchase agreement with Endeavour Silver to acquire the El Cubo mine and mill complex in Guanajuato, Mexico for about A$19,2 million in cash and share payments plus up to A$3,8 million in contingent payments.
As part of the El Cubo Complex, VanGold will acquire the El Cubo mine, the El Cubo floatation mill, and approximately 7,000 hectares of prospective mining concessions located adjacent to El Cubo and within the greater Guanajuato mine region.
The El Cubo Complex is located 8km by road northeast of VanGold ‘s El Pinguico silver-gold project near the city of Guanajuato, Mexico.
VanGold’s newest advisory board member Ramon Davila said the acquisition will allow VanGold to readily combine the El Cubo and El Pinguico assets to create Mexico’s newest silver and gold producing company.
“The availability of mineralized material from El Pinguico’s historic stockpiles and El Cubo’s current resources, as well as a new approach from management, gives us great flexibility in deciding where to source material for the mill, and how to sequence that throughput,” he noted.
“As a graduate of the University of Guanajuato School of Mines, it is very satisfying to see both of these past producing mines returning to operating status, and taking their rightful place within the Guanajuato mining district that has been the source of so many successful mining operations.”
VanGold Chairman and CEO James Anderson said the company anticipates completing the purchase of the El Cubo Complex from Endeavour by the end of March, 2021, with the signing of customary closing documents in Mexico and Canada.
“Everyone at VanGold is excited to be completing the Endeavour Agreement and looks forward to welcoming Endeavour as our largest shareholder,” he said.
“Immediately after closing, we will focus all our attention on refurbishing the El Cubo mill in order to begin processing mineralized material later this year.”
Endeavour Silver is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico.
The company is currently advancing the Terronera mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.