FSM - Fortuna completes acquisition of Chesser Resources strengthening its presence in West Africa | Benzinga
VANCOUVER, British Columbia, Sept. 20, 2023 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) is pleased to confirm the completion of the previously announced acquisition of Chesser Resources Limited (ASX: CHZ) ("Chesser") (refer to Fortuna news release dated May 8, 2023). Fortuna has acquired 100 percent of the fully paid ordinary shares of Chesser (the "Chesser Shares") in consideration for 0.0248 of one common share of Fortuna (each whole share, a "Fortuna Share") for each Chesser Share held. On closing, Fortuna issued 15,545,368 Fortuna Shares in exchange for the Chesser Shares, representing approximately
5.1 percent of the resulting issued and outstanding Fortuna Shares on an undiluted basis. The transaction was implemented by way of a statutory scheme of arrangement pursuant to Part 5.1 of the Australian Corporations Act 2001 (Cth). Following completion of the transaction, Chesser is a wholly-owned subsidiary of Fortuna. The Chesser Shares are expected to be delisted from the ASX within one to two business days.
The acquisition of Chesser expands Fortuna's presence in West Africa to include the preliminary economic assessment stage Diamba Sud Gold Project in Senegal, a new and emerging gold discovery in the region. Chesser holds tenements in Senegal covering approximately 872 km2 of prospective ground located close to, and sharing similar geological features with nearby tier one gold mines. Diamba Sud is comprised of four open pittable high grade gold deposits, along with numerous anomalies yet to be tested. Fortuna will prioritize exploration to expand the mineral resource at Diamba Sud before advancing the project to the development stage.
Jorge A. Ganoza, President and CEO of Fortuna, commented, "With the acquisition of Chesser, Fortuna continues to strengthen its presence in West Africa. Senegal is a mining friendly and highly prospective jurisdiction, and we are excited about the growth potential that Chesser's Diamba Sud Gold Project provides." Mr. Ganoza concluded, "We look forward to integrating Diamba Sud into our global portfolio, focusing on exploration to unlock value, and partnering with the local communities and stakeholders as we continue to advance the project."
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility. For more information, please visit our website.
ON BEHALF OF THE BOARD
Jorge ...