Fortuna Silver Mines plans to acquire all the issued and outstanding securities of Roxgold Inc. in a transaction estimated at C$1.1 billion ($890 million). The transaction would create a multinational intermediate gold and silver producer and positioned it to pursue compelling organic and inorganic growth opportunities. The anticipated annual gold equivalent combined production of approximately 450,000 ounces (oz) at an all-in sustaining costs (AISC) of approximately US$950 per gold equivalent oz.
“With Roxgold, we are acquiring a complete business platform, which brings low-cost gold production; a permitted feasibility stage development project; a robust exploration pipeline; and key members of a seasoned executive team of proven mine builders, developers, and explorers in West Africa,” Fortuna President and CEO Jorge A. Ganoza said. “The combined company will be in a stronger position to continue accelerating the development of the Séguéla gold project at a lower cost of capital and aggressively pursuing the potential of a most exciting exploration pipeline in West Africa and Latin America. At Fortuna, we have known and followed the success of the Roxgold team for a number of years, from their early start at Yaramoko, and now look forward to working together and continuing to deliver value to our shareholders through the advancement of our assets and discovery.”
Roxgold owns and operates the high-grade Yaramoko Complex located on the Houndé greenstone belt in western Burkina Faso and is advancing the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire. The Yaramoko gold mine consists of two high-grade underground gold mines: the 55 Zone and Bagassi South. Annual gold production in 2020 is expected to be between 120,000 and 130,000 oz.