Endeavour will acquire a 100% stake in AuRico Gold’s El Cubo silver-gold mine and the Guadalupe y Calvo silver-gold exploration project for total consideration of up to $250m.

The move follows a definitive agreement signed between the two companies, under which Endeavour will pay AuRico Gold $100m worth of its common shares and $100m in cash.

AuRico Gold will also receive an additional $50m in cash payments from Endeavour upon the occurrence of certain events during the three years following the closure.

Endeavour chairman and chief executive officer Bradford Cooke said, "El Cubo’s proximity and similarity to, and potential synergies with, our Guanajuato mine, make 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."

El Cubo is located in the south-east part of the historic Guanajuato mining district in central Mexico, while the Guadalupe y Calvo is located in the Guadalupe y Calvo mining district in Chihuahua State.