Endeavour Silver to Sell Bolañitos Mine to Guanajuato Silver

Endeavour Silver announced a definitive share purchase agreement with Guanajuato Silver Company under which Guanajuato Silver will acquire the Bolañitos mine for up to US$50 million. Closing is expected in January 2026.

“As part of our ongoing strategy to create long-term value for our shareholders, the sale of Bolañitos marks a significant milestone in the rationalization of our portfolio,” said Dan Dickson, CEO. “By focusing our resources on our core silver assets, particularly delivering at Terronera and advancing the world-class Pitarrilla project, we are sharpening our operational focus and positioning the company for sustainable growth. We remain committed to maximizing the potential of our silver portfolio and reinforcing our leadership in the sector.”

Under the agreement, Guanajuato Silver will acquire all issued and outstanding shares of Mina Bolañitos, the entity that owns the Bolañitos Mine in Guanajuato, Mexico. The initial US$40 million consideration includes US$30 million in cash and US$10 million in Guanajuato Silver common shares. The share price was set at US$0.2709413, based on the 10-day VWAP on the TSX Venture Exchange and the Bank of Canada’s average exchange rate on Nov. 20, 2025.

Endeavour may receive two contingent payments of US$5 million each once Guanajuato Silver produces 2Moz-4Moz of silver equivalent from Bolañitos. Each payment will be split evenly between cash and shares, subject to a maximum ownership cap of 9.9% for Endeavour. Any remaining balance beyond this limit will be paid in cash. If the market price of the shares falls below the calculated issue price, Guanajuato Silver will pay the difference in cash.

At closing, the companies will enter into an investor rights agreement that grants Endeavour participation rights and includes a 12-month voting commitment. All shares issued as part of the base consideration will be subject to transfer restrictions for one year, after which half will remain restricted for an additional two years.

The transaction remains subject to standard closing conditions, including regulatory approvals and execution of the investor rights agreement. The contract includes a reciprocal termination fee of US$2.5 million, payable in cash or partly through shares issued at the applicable 10-day VWAP. No finders’ fees were paid.

Recent Transactions in Mining

Other companies have also moved to divest assets. In January, Fortuna Mining entered into a binding letter agreement to sell Minera Cuzcatlán to the private Mexican firm Minas del Balsas. After 13 years of operation, Fortuna noted that the asset is no longer part of its core portfolio. The transaction will see Fortuna exit the San Jose Mine, which had been scheduled for progressive closure starting in early 2025. Following the sale, Fortuna will no longer own the mine except for a 1% net smelter return royalty on production from the San Jose concessions for five years after production begins.

Similarly, the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) is selling its 88.06% stake in the Boleo copper mine in Baja California Sur. The divestment supports KOMIR’s plan to reduce overseas mining assets while focusing on securing critical mineral supply chains.

KOMIR has engaged EIP Asset Management and CIBC Capital Markets as joint advisors for the sale. The Boleo mine, which began commercial production in 2015, holds estimated reserves of 150Mt and has a projected lifespan of more than 15 years. It produces copper, cobalt, and zinc and has self-sustaining infrastructure, including a port, power plant, and highway access.