The Motley Fool Previous Page

Endeavour's Cream of the Silver Crop

Christopher Barker
September 30, 2010

The most memorable pairings often begin with an ounce of friction. Remember when Harry met Sally?

From where I stand, I can see sparks of chemistry flying between Endeavour Silver (AMEX: EXK  ) and acquisition target Cream Minerals, even if Cream is presently curdling with opposition to Endeavour's advances.

When I spoke with Endeavour chairman and CEO Bradford Cooke last month, he described a process -- already two years in the making -- to identify and acquire the asset that would become Endeavour's "mine No. 3." Following an exhaustive review of silver-bearing properties in Mexico, and after finding no workable pairings involving producing silver assets, Cream Minerals' Nuevo Milenio exploration property ended up at the top of Cooke's list as the apparent cream of the Mexican silver crop.

In a conference call Tuesday, Cooke acknowledged the cavernous gap between Endeavour's $10.3 million cash offer for the explorer -- representing a 76% premium over a trailing-10-day average of the preoffer share price -- and a decidedly optimistic allusion to potential multibillion-dollar valuations emerging from a member of the Cream Minerals board of directors during