"El Cubo a logical and strategic acquisition for Endeavour that will have an immediate and sizable impact on our production, reserves and resources with minimal or no dilution to our shareholders. We hope to replicate at El Cubo the same types of exploration and operational successes that we have engineered at our Guanacevi and Guanajuato mines." - Bradford Cooke CEO
-- Adds a third producing silver-gold mine to Endeavour's mine portfolio and launches Endeavour into the mid-tier of primary silver producers -- Adds an advanced gold-silver exploration project to Endeavour's exploration portfolio with the potential to become Endeavour's fourth mine -- Accretive to Endeavour on all financial measures -- Increases 2012 silver production by at least 12% to 4.8 million oz based on Q1, 2012 production and six months production. Revised production guidance will be provided post-Closing -- Increases proven and probable reserves by 110% to 35.3 million oz Ag and 477% to 389,500 oz Au, measured and indicated resources by 41% to 55.0 million oz Ag and 135% to 686,800 oz Au, and inferred resources by 88% to 66.1 million oz Ag and 331% to 800,800 oz Au -- Potential to reduce cash costs at El Cubo through operational synergies with the Guanjuato mine -- Substantially increases Endeavour's prospective mineral land-holdings and exploration potential in Mexico
It looks like Cooke is using our "strategic assets" to purchase an even larger hoard of Silver and Gold, this stuff still needs to come out of the ground. But hey, that's what these guys to best. Judging by the purchase price minus the cost of production when applied to the current estimated reserves, I estimate that EXK stands to make 8 to 12x their 200 million dollar investment (up to 100 mil in cash) after current costs given a valuation of $32 per oz for silver $1625 for gold are factored in. I LOVE this company. Hang on to your stock - it will LOVE YOU back!