Newsfile
April 01, 2025 11:43AM GMT
Vancouver, British Columbia--(Newsfile Corp. - April 1, 2025) - Versamet Royalties Corporation ("Versamet") announces that it has entered into an agreement (the "Agreement") with Endeavour Silver Corp. and certain of its wholly-owned subsidiaries (collectively "Endeavour Silver"), to support the proposed acquisition of Compañia Minera Kolpa, the owner of the polymetallic Huachocolpa Uno mine located in the district of Huachocolpa within the province and department of Huancavelica, Peru (collectively "Kolpa").
Pursuant to the terms of the Agreement, Versamet will acquire a copper stream on Kolpa for total up-front cash consideration of US$35 million.
"We are very happy to announce this transaction to support Endeavour Silver's acquisition of Compañia Minera Kolpa," said Dan O'Flaherty, CEO of Versamet. "Kolpa has been in continuous production for more than 25 years and we believe that under the ownership of Endeavour Silver, it will continue to produce for many years to come. Adding this copper stream will have a meaningful and immediate positive impact on our already robust free-cash flow generating royalty and streaming business."
Transaction Highlights
Transaction Key Terms
Compañia Minera Kolpa Overview
Kolpa is a silver-focused polymetallic mining company located in the district of Huachocolpa within the province and department of Huancavelica, approximately 490 km southeast of Lima, Peru and holds 143 mining concessions 25,177 hectares and 1 beneficiation concession covering 366 hectares. Mineralization occurs mainly as polymetallic epithermal deposits rich in silver, lead, zinc and copper. Mineralized material is mined using underground mining methods (sublevel stoping and cut and fill), followed by a 2,000 tonnes per day ("tpd") (installed capacity) concentrator plant using a conventional selective flotation process designed to obtain a bulk concentrate with a subsequent separation of lead-silver, copper-silver and zinc concentrates. In 2024, Kolpa produced around 2.0 million ounces ("oz") of silver, 19,820 tonnes of lead, 12,554 tonnes of zinc and 518 tonnes of copper (5.1 million silver equivalent ounces ("AgEq oz")). In 2024, the operating cost was approximately $133 per tonne, resulting in cash costs on a by-product basis of $12.58/oz Ag and all-in sustaining costs of $22.80/oz Ag. The land package remains underexplored with approximately 10% of the claims worked to date with multiple targets identified by the Kolpa exploration geologists. For additional information on Kolpa, please see Endeavour Silver's press release at https://edrsilver.com/news-media/news/.
For more information about Versamet Royalties, please visit our website at www.versamet.com
General inquiries email: info@versamet.com.
The scientific and technical information contained in this news release has been reviewed and approved by Diego Airo, P.Eng, Vice President of Evaluations for Versamet Royalties and a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Airo is a Qualified Person as defined in the National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Versamet uses certain performance measures in its analysis. These non-GAAP performance measures are included in this document because these statistics are key performance measures that management uses to monitor performance to assess how Versamet is performing. These performance measures do not have a standard meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other companies.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking statements regarding: the timing and payments under the Agreement; anticipated timing of closing; the ability of Kolpa to produce for many years; anticipated draw on our existing revolving credit facility; and other statements regarding future plans, expectations, exploration potential, guidance, projections, objectives, estimates and forecasts as well as our expectations with respect to such matters. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on our beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, Versamet has applied several material assumptions, including, but not limited to: Versamet's activities will be conducted in accordance with Versamet's public statements and stated goals; there will be no material adverse change affecting Versamet; and Versamet's ability to meet current and future obligations and other assumptions. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to general market conditions. The foregoing list of factors that may affect future results is not exhaustive. Readers should carefully consider the foregoing factors and other uncertainties and potential events. Versamet does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Versamet or on behalf of Versamet, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246897