Fortuna acquires Chesser Resources
Fortuna Silver Mines has bought out gold exploration firm Chesser and its Diamba Sud gold project in Senegal. The acquisition is a strategic move for Fortuna Silver Mines, enabling them to tap into the gold resources in Senegal and expand their operations in West Africa.
The acquisition was valued at A$89 million ($57.05 million). Chesser shareholders received 0.0248 Fortuna shares for each Chesser share they held, with an implied value of A$0.142 per share. In total, Fortuna issued 15.54 million shares to Chesser shareholders, representing a 5.1% stake in the company.
Diamba Sud gold project
The Diamba Sud gold project occupies an area of 872 square kilometers in Senegal. It is considered a new and emerging gold discovery and shares geologic features with gold mines owned by Barrick Gold and B2Gold in Mali. The project includes four open-pittable gold deposits and several untested targets.
Fortuna plans to prioritize exploration to expand mineral resources at Diamba Sud before advancing the project to the development stage. Chesser had previously reported an indicated mineral resource estimate of 10 million tonnes averaging 1.9 grams per tonne of gold (Au) containing 625,000 ounces of gold and an inferred mineral resource estimate of 4.7 million tonnes averaging 1.5 g/t Au containing 235,000 ounces of gold.
Fortuna Silver Mines’ President and CEO, Jorge A. Ganoza, expressed enthusiasm about the acquisition, emphasizing the growth potential of the Diamba Sud gold project and the company’s commitment to working with local communities and stakeholders.
