Endeavour Silver (TSX:EDR) has executed a secured revolving term credit facility for up to US$25 million ($35.42 million) with ING Capital.
The facility provides Endeavour financial flexibility for general corporate and working capital purposes, including permitted acquisitions and investments.
ING is acting as administrative agent for the three-year facility, which matures on 5 August 2029.
The agreement includes an accordion feature allowing Endeavour to request increases up to an additional US$75 million, subject to lender consent, for a maximum facility size of US$100 million. The term can also be extended in one-year increments with written agreement from all parties.
CEO Dan Dickson says the facility strengthens the company’s financial flexibility and enhances its ability to pursue ‘disciplined’ growth.
“With access to additional working capital, we are better positioned to support our operations, invest in value-enhancing opportunities, and evaluate acquisitions and investments that align with our strategy,” Dickson says.
Borrowings under the facility bear interest based on Term SOFR or a base rate, plus an applicable margin determined by the company’s financial covenant performance.
Initial drawdown requires all material subsidiaries to guarantee the facility and provide first-lien security interests over present and future personal property in favour of ING as administrative agent.
Endeavour says it does not intend to draw on the facility immediately, establishing it instead to create financial flexibility as development of the Pitarrilla Project advances.
Located 160km north of Durango city in northern Mexico, the Pitarilla Project is an undeveloped silver, zinc, and lead deposit acquired by Endeavour from SSR Mining (NASDAQ:SSRM) in 2022.
Endeavour Silver is a mid-tier silver producer operating three mines in Mexico and Peru, with exploration projects across Mexico, Chile, and the US.
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