Polymetals Resources Finalizes Acquisition of Endeavor Mine
Polymetals Resources has finalized revised agreements for the acquisition of the Endeavor Silver, Zinc, and Lead Mine from CBH Resources, a subsidiary of Toho Zinc. This development brings the mine closer to resuming production.
Key aspects of the agreement include a deferment of the exchange of the Endeavor Mine Rehabilitation Bond for up to two years at a cost of 2% per annum. A new share sale agreement grants Polymetals ownership of the mine.
Polymetals is now moving forward with project financing and plans to expedite mine restart activities, targeting production of silver, zinc, and lead in the first half of 2025.
Polymetals Executive Chairman Dave Sproule emphasized the significance of overcoming the challenges posed by the Bond exchange, which had been a major hurdle in a depressed market over the past year. He acknowledged the support of CBH and Toho in facilitating the company's plans to restart the Endeavor Mine.
The recommencement of operations at the Endeavor Mine is expected to benefit New South Wales and the Cobar community by creating over 200 jobs and contributing approximately $50 million annually to the local economy for at least the next decade. There is potential for the mine's lifespan to be extended through successful exploration and the implementation of value-adding treatment options.
With the completion of the revised agreements and the transfer of ownership to Polymetals, the company will expedite funding and commence planned restart activities, taking advantage of an improving base metal price environment to enhance the project's economics.
