Endeavour Silver's $350M Pivot: A Bet on Growth Over Debt

VANCOUVER, BC – December 04, 2025 – In a financial maneuver that speaks volumes about its long-term ambitions, Endeavour Silver Corp. has successfully closed a US$350 million offering of unsecured convertible senior notes. While capital raises are common in the mining sector, this transaction is far from routine. It represents a decisive strategic pivot, allowing the mid-tier silver producer to simultaneously clean up its balance sheet and pour fuel on the fire of its most promising growth asset, the Pitarrilla project in Mexico.

This isn't just about securing funds; it's about optimizing the company's financial structure for a future where silver's role in the global economy is set to expand dramatically. By leveraging the appetite of institutional investors for convertible debt, Endeavour has secured low-cost capital to repay more expensive secured loans and accelerate a project that could transform its production profile for years to come. The move signals confidence not only in its own operational capabilities but also in the enduring strength of the silver market itself.

A Strategic Balance Sheet Overhaul

A key objective of the US$350 million raise, which includes a fully exercised US$50 million option, is the repayment of a senior secured credit facility held with ING Capital and Societe Generale. Before this offering, Endeavour carried a moderate debt load of approximately US$161.5 million. While manageable, servicing this secured debt represented a recurring drain on cash flow.

The new convertible notes, however, fundamentally alter this equation. With an exceptionally low annual interest rate of just 0.25%, the cost of this capital is a fraction of what typical corporate debt would command, especially for a capital-intensive industry like mining. This strategic refinancing accomplishes several critical goals. First, it significantly reduces the company's debt servicing costs, freeing up valuable cash that can be redirected toward operations and growth. Second, by replacing secured debt with unsecured notes, it enhances the company's financial flexibility and unencumbers assets, strengthening its overall balance sheet.

This proactive liability management demonstrates a sophisticated approach to corporate finance. Instead of waiting for debt maturities to loom, Endeavour has seized a favorable market window to restructure its obligations on highly advantageous terms, positioning itself with a cleaner, more resilient financial foundation to navigate the opportunities and volatilities of the commodities market.

The Pitarrilla Push: Unlocking a Silver Giant

The most exciting chapter of this story lies in Durango, Mexico, at the site of the Pitarrilla project. Acquired from SSR Mining in 2022, Pitarrilla is widely regarded as one of the largest undeveloped silver deposits in the world. For Endeavour, it is not just another project in the pipeline; it is a cornerstone asset with the potential to catapult the company into the ranks of senior silver producers.

Proceeds from the note offering are earmarked to aggressively advance Pitarrilla's development. Since the acquisition, Endeavour has been diligently working to de-risk and optimize the project. This has involved extending an existing underground ramp by over a kilometer and conducting new drilling campaigns to refine the geological model, with a focus on identifying high-grade zones suitable for efficient underground mining. The company has already engaged engineering firms to lay the groundwork for a comprehensive economic study, expected by the end of 2025.

This US$350 million capital injection is the catalyst needed to accelerate this timeline. It provides what one analyst called "enhanced planning room," allowing management to move forward with critical-path items like advanced metallurgical testing, mine design, and infrastructure planning with confidence. The funding essentially greenlights the next major phase of development, transforming Pitarrilla from a long-term possibility into a tangible, near-term growth driver. For a company aiming to expand its production pathway, bringing a project of this scale online would be a game-changer, adding significant new production and geographic diversity to its portfolio.

Convertible Notes: A Savvy Play for Investors?

The choice of convertible senior notes as the financing vehicle is itself a strategic masterstroke. While the announcement triggered a predictable, short-term 7% dip in Endeavour's stock price on dilution concerns, a closer look at the deal's structure reveals a more nuanced picture. The notes feature an initial conversion price of approximately US$12.4550 per share—a substantial 32.5% premium to the stock's price at the time of the deal. This means existing shareholders will not face dilution unless the company's share price appreciates significantly, aligning the interests of noteholders with those of equity investors.

This structure proved highly attractive to the "qualified institutional buyers" to whom the notes were offered. It provides them with the downside protection of a debt instrument while offering upside participation in the company's future success. For Endeavour, it secures long-term capital at a minimal cash interest cost, preserving cash for project development. The strong institutional demand, evidenced by the full exercise of the US$50 million overallotment option, serves as a powerful vote of confidence in management's strategy and the project's potential.

This financing arrives at a pivotal moment for the silver market. After years of a structural supply deficit, which is projected to approach 800 million ounces between 2021 and 2025, the macroeconomic winds appear to be at silver's back. With forecasts from some market watchers calling for silver to test US$40 or even US$50 per ounce in 2025, driven by both investment demand and its critical role in green technologies like solar panels and electric vehicles, the timing could not be better. Endeavour is not just funding a mine; it is positioning a world-class asset to come online in what could be one of the strongest silver markets in a generation. This isn't just a capital raise; it's a calculated move to secure a leading role in the next chapter of the silver market, and the financial world is watching closely to see if the bet pays off.