Fortuna Silver Mines Inc. (TSX-V:FVI) plans to buy fellow Vancouver company Continuum Resources Ltd. (TSX-V:CNU) in an all-share deal worth approximately $8.8 million.
Fortuna is acquiring Continuum for its San Jose silver and gold project, which is 43 kilometres south of Oaxaca in southern Mexico.
It owned 76% of the joint venture, which was created to develop the project, but will gain 100% ownership through its Continuum acquisition. Continuum also owns two other silver gold projects in Oaxaca.
Fortuna will issue Continuum shareholders seven million Fortuna shares, which values the deal at approximately $8.8 million, based on Fortuna's share price of $1.26 at Thursday's close. The deal is still subject to regulatory and other customary approvals.
Fortuna's share price during the past week: between $1.16 and $1.28; 52-week high: $3.96; 52-week low: $1.13.