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ReGIonAL RoUnD-UP

Roxgold finds fortune

with unlikely suitor

Roxgold’s ongoing success at the Yaramoko mine in
Burkina Faso attracted the attention of fellow TSX-
listed producer Fortuna Silver Mines, which is set to
acquire all of the issued and outstanding securities in
the West African miner via a $C1.1 billion merger

est African M&A is back on the menu Roxgold, Dorward expressed his confidence 42.1% premium to the target’s closing price
Wafter one of the region’s most unher- that this was the “best” and “next logical step” on the same date.
alded players was snapped up by an unex- for his company. The transaction has been unanimously ap-
pected rival last month. “While we have had a great deal of suc- proved by both boards, as well as Roxgold’s
Roxgold Inc is set to be acquired by Amer- cess in Burkina Faso and Cote d’Ivoire over largest shareholder Appian Natural Resourc-
icas-focused Fortuna Silver Mines Inc in a recent years, we feel that the best future for es Fund, and could be finalised as early as
cash-and-stock deal valued at $C1.1 billion our stakeholders is to combine with a com- the end of this month.
($US884 million). The combined entity will pany of the calibre of Fortuna,” Dorward said. It is expected the merged group will have a
boast an initial production profile of 450,000 “The future belongs to liquid, well diversi- market cap of more than $US2.2 billion and
ozpa gold equivalent from operating assets in fied and capitalised companies and the com- a war chest of $US192.4 million cash minus
Burkina Faso, Mexico, Argentina and Peru, bined company will have a wealth of compel- $US157.1 million in debt.
with a near-term development project in Cote ling growth opportunities to pursue. I have News of the combination surprised many
d’Ivoire further sweetening the expanded known Jorge [Ganoza, president and chief of Roxgold’s industry peers, mostly due to
portfolio. executive of Fortuna] and his team for a num- the fact Fortuna has no presence or history in
Upon completion of the merger, Fortuna ber of years and have always respected the West Africa and is also predominantly a silver
and Roxgold shareholders will respectively professional manner in which they have built producer.
own 64.3% and 35.7% of the pro forma com- their company. “I’d never heard of them, so the deal was a
pany. “Fortuna is comprised of genuine opera- bit of a surprise,” one Australian-based West
While listed on the TSX, Roxgold is run by tors and mine builders and we look forward to African mining executive told Paydirt.
a largely Australian-bred management team, a very bright future.” Fortuna currently has three operating
including president and chief executive John Under the terms of the transaction, Rox- mines in Latin America – San Jose (Mexico),
Dorward and chief operating officer Paul gold shareholders will receive 0.283 common Lindero (Argentina) and Caylloma (Peru)
Criddle, with the company long considered shares in Fortuna and $C0.001 for each Rox- – along with a suite of exploration projects
both dinner and a diner since producing first gold common share. The exchange ratio im- across those countries.
gold at Yaramako, Burkina Faso, in 2015. plies a consideration of $C2.73 per Roxgold Ganoza, who will remain at the helm of the
During a conference call to discuss the common share, based on Fortuna’s closing expanded Fortuna group post transaction, re-
business combination between Fortuna and price on the TSX on April 23, representing a vealed he had been keeping a close eye on

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