- Fortuna Silver Mines (FVI) has completed a merger acquisition of Roxgold (ROXG)
- Vancouver-based Fortuna will acquire all issued and outstanding shares of Roxgold
- Shares were exchanged for 0.283 of a common share of Fortuna and C$0.001 in cash for each Roxgold Share held
- Upon completion of the transaction, Roxgold is a wholly-owned subsidiary of Fortuna
- Fortuna Silver is down 1.88 per cent, trading at $6.78 at 11:13 am ET
Fortuna Silver Mines (FVI) has completed a merger acquisition of Roxgold (ROXG).
Under terms of the agreement, Vancouver-based Fortuna will acquire all issued and outstanding shares of Roxgold.
Shares were exchanged for 0.283 of a common share of Fortuna and C$0.001 in cash for each Roxgold Share held.
Upon completion of the transaction, Roxgold is a wholly-owned subsidiary of Fortuna.
The transaction creates a global growth-oriented intermediate gold and silver producer.
“The successfully completed business combination creates a low-cost intermediate gold and silver producer with four operating mines and a permitted development project. The company will benefit from a robust exploration pipeline and expanded presence in the Americas and West Africa, two of the fastest growing precious metals producing regions in the world. We look forward to a successful integration and to continue building the business in West Africa on the solid foundations cemented by Roxgold,” said Fortuna President and CEO Jorge A. Ganoza.
Fortuna will continue under the name Fortuna Silver Mines with the ticker symbol FVI on the Toronto Stock Exchange and FSM on the New York Stock Exchange.
The Roxgold Shares are expected to be delisted from the TSX and OTCQX two to three trading days following closing and an application will be made to have Roxgold cease to be a reporting issuer.
“I would like to thank the Roxgold shareholders for their support. I am very proud of the Roxgold team and what we accomplished together and believe Fortuna is now positioned with one of the best organic growth pipelines among any of the intermediate precious metal producers, supported by peer-leading free cash flow generation, increased scale and diversification, and a lower cost of capital,” said Roxgold President and Chief Executive Officer John Dorward.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines and a development project in Argentina, Mexico, Peru, Côte d’Ivoire, and Burkina Faso.
Fortuna Silver is down 1.88 per cent, trading at $6.78 at 11:13 am ET.