- Chesser Resources (CHZ) agrees to a takeover by TSX-listed Fortuna Silver Mines Inc for approximately $89 million
- The binding scheme of arrangement will see Fortuna acquire all fully-paid ordinary shares of CHZ for an implied consideration of 14.2 cents per share – a 95 per cent premium to Chesser’s last closing price of 7.3 cents
- The acquisition allows Fortuna to expand its existing asset portfolio and West African footprint with the addition of Chesser’s Diamba Sud gold development project
- Shareholders have the opportunity to vote on the scheme in August 2023
- Chesser Resources is up 64.4 per cent and trading at 12 cents at 2:13 pm AEST
Chesser Resources (CHZ) shares have surged after agreeing to hand over its reins to TSX and NYSE-listed Fortuna Silver Mines Inc for approximately $89 million.
The binding scheme of arrangement would see Fortuna acquire all fully-paid ordinary shares of CHZ for an implied consideration of 14.2 cents per share.
The price represents a 95 per cent premium to Chesser’s last close of 7.3 cents on May 8 and an 83 per cent premium to its volume weighted average price (VWAP) for the past 30 days.
The acquisition would allow Fortuna to expand its existing asset portfolio and West African footprint with the addition of Chesser’s Diamba Sud gold development project.
The board of Chesser has unanimously recommended that shareholders vote in favour of the transaction, which they consider to be “mutually beneficial”.
Chesser Managing Director Andrew Grove said the transaction will provide a substantial immediate premium and great liquidity to shareholders, along with exposure to a successful intermediate precious metals producer.
“After taking into consideration a range of factors including the current challenges in securing development funding for new projects in the junior gold sector and the risk profile involved with taking an asset through feasibility and into production, the board has resolved that the opportunity to combine with a substantial multi-asset precious metals producer with a strong operational track record in Fortuna represents an attractive outcome,” Mr Grove said.
Shareholders have the opportunity to vote on the scheme in August 2023.
Chesser Resources was up 64.4 per cent and trading at 12 cents at 2:13 pm AEST.