Endeavour Silver Sells Bolañitos Mine for $50M to Fund Growth Projects
The strategic divestiture shifts focus to the high-potential Terronera and Pitarrilla assets, aiming to double the company's silver production.
Endeavour Silver Corp. (NYSE: EXK) has entered into a definitive agreement to sell its Bolañitos gold-silver mine in Mexico to Guanajuato Silver Company Ltd. for a total consideration of up to $50 million. The move is a key part of Endeavour's strategy to streamline its portfolio and channel resources into its large-scale growth projects, Terronera and Pitarrilla.
Investors reacted positively to the strategic shift, with shares of Endeavour Silver climbing approximately 2% to $7.21 in morning trading. The sale sharpens the company's focus on assets poised to significantly alter its production profile and cost structure.
Under the terms of the agreement, the transaction includes $40 million in upfront consideration, comprising $30 million in cash and $10 million in Guanajuato Silver stock. An additional $10 million is structured as contingent payments, tied to future production milestones at the Bolañitos mine, according to the official announcement. The deal is expected to close in January 2026.
Dan Dickson, CEO of Endeavour Silver, framed the divestiture as a pivotal step in the company’s long-term value creation strategy. "The sale of Bolañitos marks a significant milestone in the rationalization of our portfolio," Dickson stated. "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."
This strategic pivot directs both capital and management attention towards projects with transformative potential. The Terronera project, which recently commenced commercial production, is expected to double Endeavour Silver's consolidated silver production while significantly lowering its all-in sustaining costs. This positions the company to become a more prominent senior silver producer.
Meanwhile, the Pitarrilla project in Durango, Mexico, represents one of the world's largest undeveloped silver deposits. Endeavour has been actively advancing the project, recently raising $73 million to fund its development. The successful development of Pitarrilla would cement Endeavour's status as a leading silver producer for years to come.
The sale of Bolañitos, a mature asset with a higher cost profile, provides non-dilutive funding that can be redeployed into these higher-return initiatives. For 2025, the Bolañitos mine had a production outlook with higher cash costs, making its divestiture a logical step in Endeavour's campaign for enhanced operational efficiency.
With a market capitalization of over $2.1 billion, Endeavour Silver has navigated a wide 52-week trading range between $2.95 and $10.37. The current analyst consensus reflects optimism for the company's strategic direction, with an average price target of $9.92, suggesting significant upside from its current trading level. The company's focus on bringing its flagship projects to full potential is central to realizing that valuation.