Fortuna Silver boosts presence in West Africa with Chesser buy

Canadian miner Fortuna Silver Mines (TSX: FVI; NYSE: FSM) has expanded its footprint in West Africa after completing the acquisition of Australian gold junior Chesser Resources.

In the deal announced in May, Fortuna acquired 100% of the fully paid ordinary shares of Chesser in consideration for 0.0248 of one common share of Fortuna for each Chesser share held. Fortuna issued 15,545,368 shares on closing, in exchange for the Chesser shares, representing about 5.1 percent of the resulting issued and outstanding Fortuna Shares on an undiluted basis.

The acquisition hands Fortuna the preliminary economic assessment-stage Diamba Sud gold project in Senegal, located in the highly productive Senegal-Mali shear zone, close to world class mines.

The Vancouver-based miner said it planned to prioritize exploration to expand the mineral resource at Diamba Sud before advancing the project to the development stage.

The project adds to Fortuna Silver’s assets in West Africa, which it added in 2021 through the acquisition of fellow Canadian miner Roxgold. They include the Yaramoko gold mining complex in Burkina Faso and the Séguéla project in Côte d’Ivoire.

The company also has three operating mines in Latin America — San Jose in Mexico, Caylloma in Peru and Lindero in Argentina.

Fortuna shares were down 1.5% to $3.89 on Thursday morning in Toronto, valuing the company at $1.1 billion. Its shares traded in a 52-week range of $2.82 and $5.61.

Fortuna Silver boosts presence in West Africa with Chesser buy

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