Fortuna Silver Mines gains control of Senegal's Diamba Sud gold project

By Jonny Tickle September 22, 2023

Canadian mining firm Fortuna Silver Mines has concluded its acquisition of Chesser Resources in an AUD57.05mn ($36.69mn) deal, allowing Fortuna to gain control of Senegal’s Diamba Sud gold project.

In the acquisition deal, shareholders got 0.0248 Fortuna shares per Chesser share they owned, valuing Chesser shares at $0.142 each. Fortuna issued 15.54mn shares in this deal, giving them a 5.1% ownership in Chesser.

The prospective Diamba Sud gold project covers 872km² in Senegal and shows geological similarities to gold mines in Mali owned by Barrick Gold and B2Gold. Fortuna's primary goal is to explore and grow mineral resources, starting with four open-pit gold deposits and unexplored areas.

Chesser's previous mineral resource estimate showed an indicated mineral resource estimate of 10mn tonnes with an average gold grade of 1.9 grams per tonne (g/t), containing 625,000 ounces of gold. Additionally, there were 4.7mn tonnes with an average of 1.5g/t Au in the inferred category, containing 235,000 oz of gold.

Fortuna Silver Mines' President and CEO, Jorge A Ganoza, expressed optimism about the acquisition, highlighting Senegal's mining-friendly environment and the growth potential of the Diamba Sud gold project.

“We look forward to integrating Diamba Sud into our global portfolio, focusing on exploration to unlock value, and partnering with the local communities and stakeholders as we continue to advance the project,” he said in a press release.

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