Business
VanGold to Acquire El Cubo Mine & Mill from Endeavour Silver Corp.
Signs Financing Term Sheet for US$7.5m Silver/Gold Loan Facility VANCOUVER, BC / ACCES...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"VanGold to Acquire El Cubo Mine & Mill from Endeavour Silver Corp.Signs Financing Term Sheet for US$7.5m Silver/Gold Loan Facility VANCOUVER, BC / ACCESSWIRE / December 21, 2020 / Vancouver, British Columbia - VanGold Mining Corp (the \"Company\" or \"VanGold\") (TSXV:VGLD) is pleased to announce that it has signed a binding letter agreement with Endeavour Silver Corp. (\"Endeavour\") (EXK) (EDR) to acquire the El Cubo mine and mill complex located 8km by road northeast of the Company's El Pinguico silver-gold project near the city of Guanajuato, Mexico.El Cubo Complex: The Company has signed a binding letter agreement with Endeavour (the \"Endeavour Agreement\") to acquire the El Cubo Mine and Mill complex (the \"El Cubo Complex\"). With a rated capacity of 1,500 tonnes per day, the El Cubo Complex included two operating underground silver-gold mines and a flotation plant and employed over 350 people and engaged over 200 contractors until Endeavour suspended operations at the end of November 2019. For the year ended December 31, 2018, Endeavour produced a total of 4,578,940 silver equivalent (AgEq) ounces at the El Cubo Complex at an all in sustaining cost (AISC) per ounce of US$8.86 (2019 - 1,923,944 AgEq ounces at an AISC of US$14.85).[i]Currently, the El Cubo mine, plant and tailings facilities are on short term care and maintenance and VanGold intends to re-start the mill at approximately 750 tonnes per day using mineralized material from its surface and underground stockpiles at its El Pinguico project as a significant portion of its estimated throughput for the first 36 months of operation.VanGold Director Daniel J. Oliver said, \"This is a transformational acquisition for VanGold Mining. Our preliminary internal financial model shows a swift path to restarting production, a favorable payback period, and robust cash flows with silver at US$23 and gold at US$1850.\"As part of the El Cubo Complex, VanGold will acquire the El Cubo mine including remaining historical resources (see \"Mining History of El Cubo Complex\" below), the El Cubo mill (also known as the El Tajo mill), and approximately 7,000 hectares of prospective mining concessions located adjacent to the El Cubo mill and within the greater Guanajuato mine region. The Endeavour Agreement remains subject to acceptance of the TSX Venture Exchange (the \"TSXV\").Minin...