CA - Fortuna Silver to buy Chesser Resources in C$80M deal

2023-05-09 08:50:01 ET

Fortuna Silver Mines ( NYSE: FSM ) said late Monday it agreed to acquire Australian miner Chesser Resources ( OTCPK:CESSF ) in a deal valued at A$89M (~C$80.6M), which it said will strengthen its presence in West Africa.

Fortuna ( FSM ) expects to issue ~15.5M shares to Chesser ( OTCPK:CESSF ) shareholders, representing ~5.1% of Fortuna's issued and outstanding shares on an undiluted basis.

Fortuna ( FSM ) said the acquisition will expand its presence in West Africa to include the preliminary economic assessment stage Diamba Sud gold project in Senegal, one of the new and emerging gold discoveries in the region.

The company said a 2022 scoping study estimated the project will produce 704K oz of gold over a 7.5-year mine life, at an average all-in sustaining cost of $820/oz, with 244K oz to be delivered in the first two years of production.

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