Fort Capital Partners is pleased to announce that Goldrock Mines Corporation has entered into a definitive agreement under which Fortuna Silver Mines Inc. will purchase all of the common shares of Goldrock for total consideration of approximately $129 million.
The transaction, which remains subject to shareholder approval, has been unanimously approved by the boards of both Goldrock and Fortuna. Directors, officers and certain shareholders owning approximately 26% of Goldrock’s outstanding shares have entered into agreements to vote in favour of the transaction.
Goldrock is an emerging gold producer focused on the development of its 100%-owned Lindero gold deposit, located in Salta province in northwestern Argentina. The focused activity taken by the Company has significantly de-risked the remaining construction and development schedule deliverables for the project. Annual gold production is anticipated to average 128,000 ounces over the first three years of production and 108,000 ounces during the first nine years. Total mine life is estimated at over 12 years, with significant exploration potential both at Lindero and the adjacent Arizaro deposit, which has the potential to use the planned Lindero infrastructure.
Under the arrangement, each common share of Goldrock will be exchanged for 0.1331 common shares of Fortuna. Based on the closing price of Fortuna’s common shares on the Toronto Stock Exchange on June 6, 2016, the transaction values each Goldrock share at C$1.08, representing a premium of 58% over Goldrock’s closing share price on June 6, and a 85% premium over the volume-weighted average share price over the preceding 20 days.
Fort Capital Partners is acting as financial advisor to Goldrock on the transaction.