Ten million common shares of Medgold Resources Corporation have been acquired by Fortuna Silver Mines Inc (NYSE:FSM). Each common share was acquired at the price of C$0.15 meaning the aggregate purchase price for all the shares was C$1.5 million. The deal was carried out in a private placement.
With the number of common shares that Fortuna Silver Mines having previously been 10 million, the total number of common shares that the mining company now holds in Medgold has risen to 20 million. This represents approximately 23.97 percent of Medgold’s outstanding and issued common shares. Previously, the percentage of the stake that Fortuna held in Medgold was 13.62 percent.
Fortuna Silver Mines has acquired the shares for investment reasons. In the future, Fortuna may from time to time reduce or add on to its ownership of the Medgold securities through private placements, market transactions or otherwise. Such an action will be dependent on the market conditions and other factors. A report has been filed on www.sedar.com by Fortuna and individuals or organizations in need of the report can get a copy from the firm’s corporate secretary.
Besides the common share purchase, Fortuna and Medgold are extending their strategic alliance for one more year. This alliance, which first came to light in mid-June in 2016, will see Fortuna granted an option to a Serbian project. From the samples already collected, the project has shown remarkable potential as deposits of silver and gold have already been found.
“I am proud of our rapid progress in Serbia. It underscores Medgold’s commitment and focus on discovery and moves us closer to our aim of becoming one of the leading European gold explorers,” the president of Medgold, Dan James said.
Focused on mining opportunities in South America, some of the primary assets of the growth-oriented precious metals producer includes the Lindero gold project in Argentina, the San Jose silver and gold mine in Mexico and the Caylloma silver mine in Southern Peru.
In Wednesday’s trading session, shares of Fortuna Silver Mines Inc fell by 1.05 percent to close the day at $6.58.