Thank you for standing by. This is your conference operator. Welcome to the Conference Call for Endeavour Silver, Acquisition of Minera Kolpa. As a reminder, all participants are in a listen-only mode, and the conference call is being recorded. I would now like to turn the conference over to Ms. Allison Pettit, Director of Investor Relations. Please go ahead, ma'am.
Thank you, Operator, and good morning, everyone. We're here today to discuss the exciting announcement of Endeavour Silver's acquisition of Minera Kolpa. Before we begin, I would like to remind everyone that certain statements made on today's call may be forward-looking, and we encourage you to refer to our public filings and disclosures for a more detailed discussion of potential risks related to these statements.
On the call today, we have Endeavour Silver's CEO, Dan Dickson, who will share more about the strategic rationale behind this acquisition, the expected benefits, and further details around the transaction. We won't be taking questions on today's call, as the company is currently undertaking a distribution of securities, so we cannot discuss anything further than what is in the presentation.
All material information regarding the company and the offered securities is set out in the company's public disclosure record. With that, I'll turn it over to our CEO, Dan Dickson, who will begin by providing an overview of the transaction.
Thank you, Allison, and good morning, everyone. I'm pleased to be here today to discuss this new, exciting chapter for Endeavour. As part of our ongoing strategy to become a senior silver producer, we are thrilled to announce our acquisition of Minera Kolpa, a fully funded mine in Peru that has produced just over 31 million ounces of silver equivalent since 2016. This acquisition underscores our team's dedication and strategic vision.
It goes beyond enhancing our production portfolio and represents a critical step in positioning the company for continued growth and success in an increasingly dynamic market. We're excited about this new venture, along with Terronera, as it strategically positions us to deliver outstanding results and ensure long-term success for our shareholders, stakeholders, and employees. Kolpa is a producing mine located in the prolific mining region of Peru.
It boasts a history of consistent production with significant potential for resource expansion. The mine's infrastructure is extensive. The land package is substantial, with over 25,000 hectares covered by 143 mining rights, giving the project a strong foundation for both current operations and future exploration potential. Geologically, Kolpa is a rich silver polymetallic mineralization with significant zinc, lead, copper, and yields three main types of concentrates: lead silver, zinc silver, and copper silver, giving it a diverse production profile.
The underground mine uses sublevel stoping with cut-and-fill mining methods, and processing is done through conventional flotation, producing three concentrates. In 2024, Kolpa processed approximately 685,000 tons, producing 2 million ounces of silver, 20,000 tons of lead, 12,500 tons of zinc, and over 500 tons of copper. In silver equivalent terms, 5.1 million silver equivalent ounces. In 2024, Kolpa's cost per ton processed was $133.
Cash costs on a byproduct basis were $12.58, and all-in sustaining costs were $22.80 per ounce. The 2024 all-in sustaining costs include $9.5 million of exploration expenditures for newly discovered mineralization. Turning to slide six, I'd like to highlight the key points of our acquisition of the Kolpa mine in Peru. Endeavour Silver is acquiring Kolpa for $145 million, with $80 million in cash and $65 million in shares. There's also a contingent payment of up to $10 million based on delivering a current NI 43-101 resource estimate, and $20 million in debt will remain outstanding inside Kolpa.
Funding will come from a $35 million streaming deal with Versamet Royalties and a $40 million deal financing announced this morning, which was upsized to $45 million as it was significantly oversubscribed. We expect the transaction to close in Q2 of 2025, subject to standard approvals and closing conditions.
Kolpa represents a strategic step forward in Endeavour's vision to become a senior silver producer. This fully funded operating asset is expected to contribute approximately 5 million silver equivalent ounces, aligning well with our production plan and marks our first project in Peru. Since its early days as an 800-ton-per-day operation, Kolpa has steadily grown, now running over 1,800 tons per day, with plans underway to expand to 2,500, including a submission of a permit application.
One of Kolpa's key strengths is its synergies with Endeavour's technical capabilities. Our underground operating expertise, combined with the team that has a deep, long-standing experience at this mine, positions us well for operational success. There's also significant exploration upside. Kolpa has a solid track record of growing resources beyond depletion, with near-mine targets that offer potential for new discoveries.
Finally, the project is located in an active mining district, giving us a strong platform for continued growth in a region known for its prospective geology and ongoing mining activity. This acquisition adds a third-producing underground mine to our portfolio and one with meaningful exploration potential. Beyond output, it offers strong leverage to silver prices, providing valuable upside in a rising price environment. This mine is already fully funded, and generating positive cash flow makes it financially attractive from day one.
From a broader perspective, this deal also marks our entry into a new country. As a management team, we are very mindful of the impact on Endeavour. Peru is a well-known mining jurisdiction with great geology, great infrastructure, and support for mining. Peru is a perfect fit in the evolution of Endeavour.
Kolpa has a long operating history, existing infrastructure, and a fully staffed team already in place, all of which will help in integrating this asset into our portfolio. We also recognize Terronera construction is in progress. Yesterday, we provided an update that construction is progressing on schedule, and we expect wet commissioning to commence early this quarter.
On slide nine, in 2024, Kolpa delivered 5.1 million silver equivalent ounces, up from 4.6 million in 2023. Again, that included 2 million ounces of silver, nearly 20,000 tons of lead, over 12,000 tons of zinc, and 518 tons of copper. All-in sustaining costs were $22.80, slightly above 2023's $22, reflecting higher sustaining capital and exploration spending, both of which were aimed for long-term growth. Cash costs on a byproduct basis were $12.58 per ounce in 2024.
Kolpa is located in the Huachocolpa Mining District on the eastern flank of the Western Andes Cordillera. It's a polymetallic system rich in silver, lead, zinc, and copper, and has been in continuous production for over 25 years. Kolpa hosts several key deposits, including the Yanac ocha, Ccorimayo , and the Marta. A 16-kilometer infill drill program is underway to define and expand resources, alongside an additional 18 kilometers of brownfield drill program, aiming to prove out a resource base and deliver a current NI 43-101 resource estimate.
We also expect ongoing in-mine and near-mine exploration programs to support long-term mine life extension, similar to many underground mines. Geologically, Kolpa is classified as a low-sulphidation epithermal system, like our existing assets, Guanaceví and Bolañitos, with a uncertain structure where hydrothermal fluids have filled existing fractures.
Looking at the historic resource table, Kolpa holds a combined 6.2 million tons of measured and indicated resources, with over 21 million ounces of silver, significant lead, zinc, and copper content, plus an additional 5 million tons of inferred resources. In 2024, Kolpa processed around 686,000 tons and reflects a doubling of throughput since 2016, growing from 800 tons per day to 1,800 tons per day. The mill handles small-scale toll milling, which accounts for roughly 6% of total throughput. On the ESG front, Kolpa maintains a strong record in environmental health and safety and social responsibility. Community support remains a priority, with 43% of the workforce made up of local employees.
As the production chart shows, Kolpa has consistently increased output over the past several years, highlighting both growth momentum and operational reliability. Kolpa holds rights to 143 mining concessions across 25,000 hectares, with a 366-hectare beneficiation concession.
These include the core Huachocolpa Uno area, which comprises 63 of those claims. That map highlights Kolpa's primary focus area, where multiple active and planned operations are concentrated, offering strong potential for continued development and resource expansion. Moving to slide 13, the district shows strong exploration potential, with mineralization extending beyond known deposits and remaining open along strike and to depth. The focus is on both in-mine and near-mine targets, with additional greenfield exploration revealing new prospective zones.
This structural understanding supports ongoing resource growth and future discovery opportunities across the Kolpa district. This cross-section highlights recent discoveries of high-grade tensional veins running parallel to the main system, suggesting the potential for a third mineralized corridor alongside the Buenaventura vein. Despite its size, only about 12% of the land package has been explored so far, with several promising targets already identified.
Additionally, gold mineralization has been found in multiple veins but yet hasn't been included in historical resource estimates, offering future upside as recovery methods improve. On slide 15, we were lucky enough to partner with Versamet, and we entered into a $35 million copper stream agreement with Versamet Royalties, covering refined copper for Kolpa over a 10-year term with automatic extensions in certain circumstances.
The copper stream scales down as deliveries reach 6,000 and 10,500 tons, respectively. We appreciate Versamet's support of Endeavour and the Kolpa project and look forward to our partnership in Peru. In closing, the acquisition of Kolpa marks a transformational step in our strategic growth plan. This fully funded cash-flowing asset not only diversifies our portfolio but also positions us to significantly increase our silver equivalent production.
By integrating Kolpa's experienced team and leveraging our underground mining expertise, we are well equipped to enhance operational efficiencies and drive future growth. We remain committed to responsible mining practices and fostering strong community relationships in Peru. As we move forward, we are excited about the opportunities this acquisition presents and are dedicated to delivering long-term value to our shareholders.
Again, for those who are on the call, we won't be taking questions on today's call, as the company is currently undertaking a distribution of securities, so we cannot discuss anything further than what is in the presentation. All material information regarding the company and the offered securities is set out in the company's public disclosure record. The presentation is available on our website, and we encourage those to have a further review. Thank you for everybody attending today's call. This brings to an end today's conference call.
You may now disconnect your lines. Thank you for participating and have a pleasant day.