Fortuna Silver Mines Inc. (NYSE:FSM, TSX:FVI) announced that it, together with its subsidiary, Compania Minera Cuzcatlan and Pan American Silver subsidiary Plata Pan American, has entered into an acquisition and option agreement for the Taviche Oeste Concessions, near the San Jose Mine in Oaxaca, Mexico.
As quoted in the press release:
Cuzcatlan will purchase a 55% undivided interest in the TavicheOeste Concessions for a cash payment of US$4.0 million. Once a production decision is made to develop ore from the TavicheOeste Concessions, Cuzcatlan will purchase the remaining 45% undivided interest in the property for US$6.0 million. Plata Pan American will retain a 2.5% net smelter royalty.
Fortuna’s President and CEO, Jorge A. Ganoza, said:
This is an important acquisition for our company, not only does this simplify the mineral tenure immediately surrounding our existing mine and infrastructure, but the acquisition strengthens our exploration portfolio along the trend of current production.