Canada-based precious metals mining company Fortuna Silver Mines has completed the acquisition of ASX-listed gold and silver miner Chesser Resources, thereby expanding Fortuna’s presence in West Africa to include the Senegal-based Diamba Sud gold project – a new and emerging gold discovery in the region, which is currently progressing to development through a preliminary economic assessment.
Chesser holds tenements in Senegal covering about 872 km2 of prospective ground located close to, and sharing similar geological features with, nearby tier one gold mines.
Diamba Sud comprises four open pittable high-grade gold deposits, along with numerous anomalies yet to be tested.
The Diamba Sud project will be integrated into Fortuna’s global portfolio, focusing on exploration to unlock value, and partnering with the local communities and stakeholders as the miner continues to advance the project.
In a statement, Fortuna says it will prioritise exploration to expand the mineral resource at Diamba Sud before advancing the project to the development stage.
“With the acquisition of Chesser, Fortuna continues to strengthen its presence in West Africa.
Senegal is a mining-friendly and highly-prospective jurisdiction, and we are excited about the growth potential that Chesser’s Diamba Sud gold project provides,” Fortuna CEO and president Jorge Ganoza says.
The merger saw Fortuna acquire 100% of the fully paid ordinary shares in issue in consideration for 0.0248 of one common share of Fortuna for each Chesser share held.
On closing, Fortuna issued more than 15.5-million shares in exchange for the Chesser shares, representing about 5.1% of the resulting issued and outstanding Fortuna shares on an undiluted basis.
Following completion of the transaction, Chesser will become a wholly owned subsidiary of Fortuna, and Chesser shares have been delisted from the ASX.