Endeavour Announces Name Change to Endeavour Silver Corp. and Strategic Silver Purchase Program
Vancouver, British Columbia, Canada - August 10, 2004 - Endeavour Gold Corp. (EDR : TSX-V)announces that a name change to Endeavour Silver Corp. was approved at the Annual and Extraordinary Shareholder Meetings held August 5, 2004. The name change will become effective upon approval by the regulatory authorities. The trading symbol, EDR, is expected to remain the same.
The change of name to Endeavour Silver Corp. more accurately reflects the Company's strategic focus on silver, and the recent acquisition of the operating Santa Cruz silver mine and Guanacevi mill in Durango, Mexico. Endeavour holds an option to acquire a 100% interest in the Santa Cruz mine and Guanacevi mill by paying US $7 million over a 4 year period. Endeavour can earn an initial 51% interest by January 2005 by paying US $3 million (US $1 million already paid) and spending US $1 million on mine exploration.
Endeavour also announces that the Board of Directors has approved a strategic program of purchasing doré silver bars produced by the Guanacevi process plant, effective immediately. Management is of the opinion that accumulating silver inventory at this time should generate additional returns to shareholders for the following reasons:
Silver entered into a new secular bull market last year due to declining inventories, increasing financial demand and the depreciation of the US dollar. Although the silver price experienced an abrupt correction this year, the long-term trend is up and Endeavour wishes to take advantage of this buying opportunity.
Since Endeavour does not participate in the operations and cashflows of the mine and plant until January 2005, acquiring some of the doré silver bars produced each month gives Endeavour immediate exposure to the silver market.
Because the Company is purchasing doré silver bars produced by the mine and plant, there are no handling fees, the cost of warehousing is minor, and the bars can be readily sold locally for refining.
Endeavour currently earns only 2 to 3% annual interest on its CA $7.5 million cash holdings, so investing some cash in silver should enhance the Company's return on cash.
The shareholders also approved all of the resolutions brought forward at the AGM. Specifically, the Board of Directors including Bradford Cooke, Godfrey Walton, Leonard Harris and Mario Szotlender was re-elected; the annual financial statements, amendments to the Company Articles, increase to unlimited share capital, and employee stock option plan were approved; and KPMG was re-appointed as auditor.
The directors re-appointed Bradford Cooke as President, Godfrey Walton as Vice President, Stewart Lockwood as Secretary, and made three key appointments to the management team.
Mr. Philip Yee, M.B.A., C.P.A., C.M.C., was appointed Controller and Finance Manager. Philip has 16 years experience in all aspects of accounting, regulatory and management functions for both private and public companies, including 6 years in the mining industry. Mr. Yee previously held accounting and controller positions with Augusta Group, Can-Chi Group and other companies.
Mr. James Moors, B.Sc., P.Geo., was appointed Exploration Manager. James also works for Canarc Resource Corp., having acted as Project Geologist on the New Polaris property in the early 1990's, before leaving to work with Homestake Minerals and the BC-Yukon Chamber of Mines. Mr. Moors has over 16 years experience in the mining industry, specializing in exploration for gold and silver deposits.
Mr. Miguel A. Ordaz R., Ing., was appointed Projects Director, and legal representative of Endeavour's subsidiary company in Mexico. Miguel has 30 years experience in mineral exploration and mine management in Mexico, including 4 years as Director of COFEMI, a Mexican government organization, facilitating mining activities in the Guanacevi district, Durango. Mr. Ordaz was instrumental this year in introducing Endeavour to the Santa Cruz mine/Guanacevi plant acquisition.
Endeavour Gold Corp. (EDR : TSX-V) is a small-cap exploration and mining company focused on aggressively expanding its portfolio of high grade silver-gold properties, reserves and production in Mexico. Canarc Resource Corp. holds a minority shareholding in the company and helps manage the affairs of Endeavour.
On Behalf of the Board of Directors,
ENDEAVOUR GOLD CORP.
/s/ "Bradford J. Cooke"
Bradford J. Cooke
President and CEO
WARNING: The company relies on litigation protection for forward-looking statements. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.