Endeavour Silver Corp. (EDR.TO: Quote,EXK: Quote) and AuRico Gold Inc. (AUQ.TO: Quote) announce that they have entered into a definitive agreement whereby Endeavour will acquire 100% interests in AuRico Gold's operating El Cubo silver-gold mine in Guanajuato State, Mexico and the Guadalupe y Calvo silver-gold exploration project in Chihuahua State, Mexico, for total consideration of up to US$250 million.
On Closing, Endeavour said it will pay AuRico Gold US$200 million, comprised of, at Endeavour's election, up to US$100 million of the purchase price in Endeavour common shares and the balance in cash. Post-Closing, AuRico Gold will be entitled to receive up to an additional US$50 million in cash payments from Endeavour upon the occurrence of certain events during the three years following Closing.
For AuRico Gold, this announcement follows the recent signing of a definitive agreement with respect to the divestiture of AuRico Gold's Australian mines and is consistent with AuRico Gold's strategy of focusing on its large, low cost, core assets.
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by RTT Staff Writer
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