Fortuna Silver Mines Inc (NYSE: FSM) Announces Merger With Roxgold Inc As It Expands Its Operations In West Africa

Fortuna Silver Mines Inc (NYSE: FSM) and Roxgold Inc struck a progressive merger recently, a move expected to result in massive business expansion, among other things. The coming together of the two has given birth to a low-cost intermediate gold and silver producer that takes pride in its four operating mines in West Africa and the Americas. Analysts refer to the Americas and West Africa as the fastest-growing precious metals producing regions globally.

The business combination and its set targets

The merger expects to produce about 450,000 ounces of gold annually. In addition, it applauds its organic growth pipelines, which it terms outstanding among the various intermediate precious metal producers. As a result, it stands to enjoy lower costs, free cash flow generation, and increased scale and diversification.

Canada-based Fortuna Silver mentions its three mines. The mines include the Caylloma Mine in Peru, Lindero Mine in Argentina, and the San Jose mine in Mexico. Fortuna Silver Mines Inc’s combination with RoxGold expands its production operations significantly, considering its presence in other regions. It speaks about its operations’ establishments in West Africa and the Roxgold’s high-grade Yaramoko Gold Mine found in Burkina Faso. The other one happens to be the Séguéla Gold Project found in Côte d’Ivoire.


Fortuna bought all of its partner’s shares in exchange for 0.283 of Fortuna’s common share and awarded a C$0.001 (0.00081) in cash for each partner’s shares. As a result, Roxgold officially becomes a wholly-owned subsidiary of Fortuna.

Both Fortuna and Roxgold turned to their shareholders before making the final deal. It was after the shareholders’ approval that they continued to close the deal. It was also necessary that the British Columbia Supreme Court puts its stamp and its final order on Jun 30, 2021. It was an explicit approval to the progressive deal.

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