Fortuna Completes Mine Acquisition, Private Placement And Name Change
Mr. Peter Thiersch reports
Fortuna Silver Mines Inc., formerly Fortuna Ventures Inc., has closed the acquisition of the Caylloma silver mine in Southern Peru, completed the company's change of name and closed a private placement financing.
Caylloma hosts an estimated seven million ounces of silver in proven and probable reserves, and 14 million ounces of silver in inferred resources (the estimates are compliant with National Instrument 43-101). The acquisition also includes a 350-man camp, a 600-ton-per-day mill and over 8,000 hectares of mining concessions.
On June 8, 2005, Fortuna agreed to purchase a 100-per-cent interest in the Caylloma silver mine in consideration of cash payments totalling $7.55-million (U.S.) and the issuance of shares and warrants totalling 10.8 per cent of the fully diluted capital of the company. The initial securities issued to the vendors are 574,744 common shares of the company and warrants to purchase 862,117 common shares exercisable at 34.5 cents per share for two years.
The company has also completed a private placement of 1.5 million units at 70 cents each. Each unit consists of one common share and one warrant to purchase an additional share at 75 cents for one year, raising gross proceeds of $1.05-million.
All of the above securities have a four-month hold period from the date of issuance, expiring on Oct. 28, 2005.
The company has also changed its name, effective immediately, to Fortuna Silver Mines Inc., and will continue to trade under the symbol FVI.