Canadian company Fortuna Silver Mines has completed the $892m (C$1.1bn) merger deal with Roxgold to create a low-cost intermediate global precious metals producer.

According to the deal signed in April 2021, Fortuna acquired all the issued and outstanding common shares of the Canada-based gold mining company.

Under the agreed terms, shareholders of Roxgold secured 0.283 common shares of Fortuna and C$0.001 for each common share held.

Fortuna’s existing shareholders now own a stake of nearly 64.3% in the combined business while Roxgold shareholders own the remaining 35.7% stake.

Roxgold is now a wholly owned unit of Fortuna.

Fortuna president and CEO Jorge Ganoza said that the business combination creates a gold and silver producer with a permitted development project and four operating mines.

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Ganoza said: “The company will benefit from a robust exploration pipeline and expanded presence in the Americas and West Africa, two of the fastest-growing precious metals producing regions in the world.”

Roxgold president and CEO John Dorward said: “I am very proud of the Roxgold team and what we accomplished together and believe Fortuna is now positioned with one of the best organic growth pipelines among any of the intermediate precious metal producers, supported by peer-leading free cash flow generation, increased scale and diversification, and a lower cost of capital.”

The combined company is expected to have annual gold equivalent production of around 450,000oz.

Fortuna Silver Mines is a precious metals mining company. It has four operating mines and a development project in Argentina, Mexico, Peru, Côte d’Ivoire, and Burkina Faso, along with operations across Peru, Argentina, and Mexico.