Each one in plain English, with the numbers worked through for a shareholder.
27 Feb 2009capital raising announcement● NeutralMajor
Endeavour closed CA$14 million of five-year 10% subordinated unsecured convertible redeemable debentures. That is more than the CA$8 million first announced and fits within the CA$12 million maximum if the oversubscription right was used (inference: it was). The filing gives no new use of proceeds; the January notice said equipment, mine development, plant upgrades and general purposes. The debentures add interest-bearing debt and could convert into shares at CA$1.90 per the January terms.
22 Jan 2009capital raising announcement● NeutralMajor
Endeavour gave notice of a proposed private placement of CA$8 million of 10% unsecured subordinated convertible debentures due 2014, with a right to take up to 4,000 more debentures (CA$4 million). Each CA$1,000 debenture converts at CA$1.90 into about 526 shares plus about 263 warrants at CA$2.05. Proceeds are for mining equipment, underground access and plant upgrades at Guanacevi and Guanajuato, and general corporate purposes. This is the company's first disclosed debt, following the small equity raise at CA$1.30 in December 2008/January 2009. (The release states a closing date of 'on or before February 20, 2008', which looks like a typo for 2009.)
At the request of Canada's industry regulator IIROC, Endeavour stated it knows of no material reason for the increase in its share volume and price that day. No new business information was given.
Drilling extended the Alex Breccia zone at Guanacevi about 150 m along strike and more than 200 m deep, with best results of 670 gpt silver, 0.71 gpt gold and 4.9% combined lead-zinc over 5.18 m (BAU-12). The company is building ramp access with production targeted for Q1 2009, when it would become the second operating mine at Guanacevi, and an updated resource estimate for Guanacevi is being prepared for Q1 2009. This is the first of three new mines the CEO says are scheduled at Guanacevi in 2009.
2 Jan 2009capital raising announcement● NeutralMajor
Endeavour closed about CA$3 million of the placement announced December 17: 2,311,540 special warrants at CA$1.30, including 1.775 million brokered (CA$2.3 million) and 536,540 non-brokered (about CA$700,000). This is smaller than the up-to-CA$4 million arranged. CEO Bradford Cooke bought 115,000 units, and agent and finder fees were paid in cash plus broker special warrants. Proceeds go to working capital and possible 2009 acquisitions.
17 Dec 2008capital raising announcement● NeutralMajor
Endeavour arranged a private placement of up to 3,080,000 special warrants at CA$1.30 each (up to about CA$4.0 million, with agents able to place up to CA$1 million more). Each special warrant converts to one share plus half a warrant exercisable at CA$1.90 for 5 years. Proceeds are for working capital at the two Mexican mines and possible 2009 acquisitions. This is new share issuance at a price well below the $3.05 option price set in June 2008 (inference: a lower share price than mid-2008).
Drilling extended three recently found vein zones at Guanajuato (Bolanitos, Santa Maria and the newly named Lucero), with best results of 166 gpt silver and 5.54 gpt gold over 6.00 m (BSV-3). The company says the Lucero vein is already being developed with production starting in December, the '3785' zone at Cebada is being developed for mining next year, and the plant is on track to reach 500 tonnes per day by year-end. An updated resource estimate is planned after year-end.
More drilling at San Pedro near Guanacevi expanded three new silver zones, with the best result 1,295 gpt silver over 0.35 m inside 3.95 m at 325 gpt silver (hole NB2-1, C vein). The C vein is defined over about 100 m length and 100 m depth and is still open; 2,000 m more drilling is planned to year-end, and management expects an initial San Pedro resource by year end. This continues the June 2008 San Pedro discoveries.
Drilling south of the operating Bolanitos mine at Guanajuato found four new zones of high-grade silver-gold, with the best hole SJS-1 returning 374 gpt silver and 3.14 gpt gold over 9.50 m. The company says the intercepts are close to existing workings and could be reached by extending ramps; 2,400 m of drilling is done and another 2,100 m has started. This builds on the February 2008 '3785' discovery at Cebada.
Drilling on the San Pedro properties (acquired near Guanacevi, with the adjacent Milache) found several new zones of high-grade silver, including 6,680 gpt silver and 11.2 gpt gold over 1.15 m in hole EPS3-1. Seven of 12 holes hit interesting silver mineralization across five target areas, all open for expansion; 1,500 m more core drilling has started and a 3,000 m reverse-circulation program is being mobilized.
Drilling extended the Santa Cruz zone at Guanacevi about 100 m further down-dip, with base metals found for the first time, and infill drilling better defined the El Cometa zone at Parral. A ramp towards Santa Cruz is 530 m of 820 m complete, with production targeted for Q3 2009. The company also set 1,400,000 stock options at $3.05, vesting over two years.
Updated estimates to December 31, 2007 show proven and probable silver reserves up 50% to 14.9 million oz (Guanacevi and Guanajuato), and total silver-equivalent reserves and resources up 11% on a year earlier. The Guanajuato acquisition in Q2 2007 added reserves, and the Cometa zone at Parral (Cometa resources only, no reserves) has a preliminary economic assessment nearing completion. This builds on the February drilling results.
Drilling at the Cebada Mine in Guanajuato found a new gold-silver zone (best hole: 4.54 gpt gold and 316 gpt silver over 1.70 m core length), and drilling at Porvenir in Guanacevi extended the known silver orebody (best: 531 gpt silver and 1.45 gpt gold over 2.10 m). Six more holes are underway at Cebada, and the company has five rigs working in Mexico under a 38,000 m 2008 drilling budget.
Endeavour has taken an option to buy the Navegantes silver properties (470 hectares, two historic mines) near Parral, Chihuahua, for $470,000 in escalating cash payments over 2 years. The ground has not been drilled with modern methods; a Phase 1 program of about 1,800 m in about 15 holes is planned shortly, adding to the Parral exploration project.
