Fortuna Silver Mines Inc (NYSE: FSM) is a Canadian public silver mining company with its headquarters in Vancouver, and its market capitalization is 1.24B CAD. Fortuna Silver Mines Inc primarily trades in Toronto Stock Exchange under the ticker symbol FVI.
Business combination completion
On July 2, the company announced that Fortuna Silver Mines Inc and Roxgold Inc. had completed the business combination that they announced earlier. The business combination was announced to create a new silver and immediate gold producer that is pitched as growth-oriented and global premier.
This completion paves the way for a pre-approved development project and four operating mines. Fortuna CEO, Jorge A. Ganoza, said that the company would derive benefits from better footprints in West Africa and the Americas through the robust pipeline. The two regions mentioned above are the faster-growing hubs for precious metals. The CEO stated that they are looking for integration and continuous business building primarily in West Africa on substantial grounds cemented with Roxgold’s presence.
Meanwhile, the CEO and President of Roxgold stated that the shareholders have unanimously extended their support for this association. As a result, Fortuna will be positioned as the company with the best organic growth pipelines. It will also help position Fortuna as a precious metal producer, supporting increased diversification and scale, lower capital cost, and cash flow generation.
As per the transaction, Fortuna has acquired the common shares of Roxgold, both outstanding and issued, swapping Fortuna’s common share for C$0.001 in cash regarding each share of Roxgold held. After this completion, Roxgold has become a fully-owned subsidiary of Fortuna. Roxgold shareholders had unanimously approved the transaction in the shareholder meeting on June 28, 2021. British Columbia Supreme Court gave the final order granting a nod to the arrangement on June 30, 2021.