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Fortuna and Roxgold announce business combination

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(Kitco News) - Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) and Roxgold (TSX: ROXG) (OTCQX: ROGFF) announced today that they have entered into a definitive agreement whereby Fortuna will acquire all the issued and outstanding securities of Roxgold pursuant to a plan of arrangement.

Under the terms of the transaction, Roxgold shareholders will receive 0.283 common shares of Fortuna and C$0.001 for each Roxgold common share held. Upon completion of the transaction, existing Fortuna and Roxgold shareholders will own approximately 64.3% and 35.7% of the pro forma company, respectively.

According to the statement, this transaction creates a premier growth-oriented global intermediate gold and silver producer, well positioned to pursue compelling organic and inorganic growth opportunities, with an anticipated annual gold equivalent combined production of approximately 450,000 ounces at AISC of approximately US$950 per gold equivalent ounce.

The combined company will operate diversified, complementary portfolio of four quality operating assets and a development project in prolific jurisdictions with a projected pro forma average annual EBITDA of over US$500 million (2021E to 2023E).

Roxgold is a Canadian-based gold mining company with assets located in West Africa. Roxgold owns and operates the high-grade Yaramoko gold mine located on the Houndé greenstone belt in Burkina Faso and is also advancing the development and exploration of the Séguéla gold project located in Côte d’Ivoire.

Fortuna Silver Mines is a Canadian precious metals mining company with operations in Peru, Mexico, and Argentina.

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