Capstone Partners advised Canamex Gold Corp on the sale of the Bruner Gold Property, located in Nye County Nevada, to Endeavour Silver Corp.
Endeavour paid US $10 million in cash for 100% of the Bruner Gold Project which includes mineral claims, mining rights, property assets, water rights, and government authorizations and permits.
The Bruner Gold Project is an exploration stage gold project located in central Nevada at the northern end of the Paradise Range—about 110 air-miles east-southeast of Reno and 15 air-miles north-northeast of Gabbs. The company issued an updated NI 43-101 compliant Preliminary Economic Assessment (PEA) on Bruner dated December 26, 2017 outlining project development as a low capital, open-pit, heap-leach gold operation over a 10-year mine life. The US $10 million sale price for the property equates to an un-risked cost of US $22.75 per in situ ounce—above the internal breakeven cutoff in the PEA—using a 75:1 conversion of Ag to Au.
Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour has been advancing its Terronera Mine Project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.
Endeavour CEO Dan Dickson commented, “We are pleased to add an advanced precious metals property to our project pipeline. Bruner should be an accretive acquisition for our five-year strategic plan to become a premier senior silver producer, with potential for exploration discoveries, district acquisitions, near-term production, and organic growth… We look forward to unlocking the full potential of the Bruner Property with the goal of building a new mining operation in another historic mining district in Nevada.”
The expert investment banking professionals on Capstone Partners’ Mining & Metals Team work with leading middle market companies operating in the Mining & Metals market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Mining & Metals Banking Team, contact us here.