Fortuna completes acquisition of Chesser Resources, strengthening its presence in West Africa
Fortuna completes acquisition of Chesser Resources, strengthening its
presence in West Africa
Vancouver, September 20, 2023: Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to confirm
the completion of the previously announced acquisition of Chesser Resources Limited (ASX: CHZ)
("Chesser") (refer to Fortuna news release dated May 8, 2023). Fortuna has acquired 100 percent of the
fully paid ordinary shares of Chesser (the " Chesser Shares") in consideration for 0.0248 of one common
share of Fortuna (each whole share, a "Fortuna Share") for each Chesser Share held. On closing, Fortuna
issued 15,545,368 Fortuna Shares in exchange for the Chesser Shares, representing approximately
5.1 percent of the resulting issued and outstanding Fortuna Shares on an undiluted basis. The transaction
was implemented by way of a statutory scheme of arrangement pursuant to Part 5.1 of the Australian
Corporations Act 2001 (Cth). Following completi on of the transaction, Chesser is a wholly -owned
subsidiary of Fortuna. The Chesser Shares are expected to be delisted from the ASX within one to two
business days.
The acquisition of Chesser expands Fortuna’s presence in West Africa to include the preliminary economic
assessment stage Diamba Sud Gold Project in Senegal, a new and emerging gold discovery in the region.
Chesser holds tenements in Senegal covering approximately 872 km2 of prospective ground located close
to, and sharing similar geological features with nearby tier one gold mines. Diamba Sud is comprised of
four open pittable high grade gold deposits, along with numerous anomalies yet to be tested. Fortuna will
prioritize exploration to expand the mineral resource at Diamba Sud before advancing the project to the
development stage.
Jorge A. Ganoza, President and CEO of Fortuna, commented, “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.” Mr. Ganoza concluded, “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.”
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in
Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru . Sustainability is integral to all our operations
and relationships. We produce gold and silver and generate shared value over the long -term for our
stakeholders through efficient production, environmental protection, and social responsibility. For more
information, please visit our website.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.
NEWS RELEASE
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Investor Relations:
Carlos Baca | [email protected] | www.fortunasilver.com | X | LinkedIn | YouTube
Forward-looking Statements
This news release contains forward -looking statements which constitute “forward -looking information” within the meaning of
applicable Canadian securities legislation and “forward -looking statements” within the meaning of the “safe harbor” provisions
of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included herein,
other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks
and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward -looking
Statements.
The Forward-looking Statements in this news release may include, without limitation, statements about the timing of the delisting
of the Chesser Shares from the ASX; exploration on the Diamba Sud gold project; the ability to expand and prove a mineral resource
at the Diamba Sud gold project , and other similar statements. Often, but not always, these Forward-looking Statements can be
identified by the use of words such as "anticipated", “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”,
“detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be ”, or
statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the
ability of the Company to control or predict and which may cause actual results, performance, or achievements to be materially
different from any results, performance or achievements expressed or implied by the Forward -looking Statements. Such risks,
uncertainties and factors include, among others, the ability to access various sources of debt and equity capital, generally and on
acceptable terms; changes in general economic conditions and financial markets; changes in the prices of key supplies;
technological and operational hazards in the Company mine development activities; operational risks associated with mining and
mineral processing; uncertainty relating to Mineral Resource and Mineral Reserve estimates; uncertainty relating to capital and
operating costs, production schedules and economic returns; uncertainties related to new mining operations and development
projects such as the Séguéla Project and newly acquired Diamba Sud Gold Project, including the possibility that actual capital and
operating costs and economic returns will differ significantly from those estimated for such projects prior to production;
uncertainty relating to the costs of the construction, the financing of construct ion and timing for the completion of the Séguéla
Project and the development of the Diamba Sud Gold Project ; risks relating to the Company’s ability to replace its Mineral
Reserves; risks associated with mineral exploration and project development; uncertainty relating to the repatriation of funds as
a result of currency controls; environmental matters including obtaining or renewing environmental permits and potential liability
claims; uncertainty r elating to nature and climate conditions; risks associated with political instability and changes to the
regulations governing the Company’s business operations; changes in national and local government legislation, taxation,
controls, regulations and poli tical or economic developments in countries in which the Company does or may carry on business;
risks associated with war, hostilities or other conflicts, such as the Ukrainian – Russian conflict, and the impact it may have on
global economic activity; ris ks relating to the termination of the Company’s mining concessions in certain circumstances; risks
related to the Company’s ability to develop and maintain relationships with local communities and stakeholders; risks associated
with losing control of public perception as a result of social media and other web -based applications; potential opposition to the
Company’s exploration, development and operational activities; risks related to the Company’s ability to obtain adequate
financing for planned exploration and development activities; property title matters; risks relating to the integration of businesses
and assets acquired by the Company; impairments; risks associated with climate change legislation; reliance on key personnel;
adequacy of insurance cover age; operational safety and security risks; legal proceedings and potential legal proceedings; the
ability of the Company to successfully contest and revoke the resolution issued by SEMARNAT which annuls the extension of the
environmental impact authorization for the San Jose mine; uncertainties relating to general economic conditions; risks relating to
a global pandemic which could impact the Company’s business, operations, financial condition and share price; competition;
fluctuations in metal prices; ris ks associated with entering into commodity forward and option contracts for base metals
production; fluctuations in currency exchange rates and interest rates; tax audits and reassessments; risks related to hedgin g;
uncertainty relating to concentrate trea tment charges and transportation costs; sufficiency of monies allotted by the Company
for land reclamation; risks associated with dependence upon information technology systems, which are subject to disruption,
damage, failure and risks with implementation and integration; labor relations issues; as well as those factors discussed under
“Risk Factors” in the Company's Annual Information Form. Although the Company has attempted to identify important factors
that could cause actual actions, events, or results to differ materially from those described in Forward -looking Statements, there
may be other factors that cause actions, events, or results to differ from those anticipated, estimated or intended.
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Although Forward-looking Statements contained in this news release is based upon what the Company believes are reasonable
assumptions at the time they were made, such statements are made as of the date hereof and the Company disclaims any
obligation to upd ate any Forward -looking Statements, whether as a result of new information, future events, or results or
otherwise, except as required by law. There can be no assurance that these Forward-looking Statements will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such statements. Accordingly, no assurance
can be given that any events anticipated by the Forward -looking Statements will transpire or occur, or if any of them do, what
benefits or liabilities Fortuna will derive from them. For the reasons set forth above, investors should not place undue reliance on
Forward-looking Statements.