Endeavour Signs Agreement with SQM
9 August 2012
Endeavour signs memorandum of understanding for an option and joint venture agreement
Santiago, Chile, August 9, 2012 – Endeavour Silver Corporation has announced that it signed a memorandum of understanding for an option and joint venture agreement with La Sociedad Quimica Minera de Chile SA ("SQM") to earn 75% interest in the El Inca silver-gold properties located about 250 km northeast of Antofagasta and 27 km northwest of Calama, in northern Chile.
Pursuant to the memorandum of understanding, Endeavour has an option to acquire the 75% interest in the El Inca properties by making staged cash payments totaling US$2 million and staged exploration expenditures totaling US$5 million over a 4-year period. Endeavour must also complete an NI 43-101 resource estimate and prefeasibility study. A joint venture will then be formed with Endeavour as the operator, with SQM retaining 3.5% NSR royalty on mineral production and Endeavour having the right to purchase 1% of the NSR for US$1 million at any time.
Baker & McKenzie's Santiago Office, led by Partner Antonio Ortúzar Jr. and assisted by Partner Mirco Hilgers, represented Endeavour in the signing of the agreement.