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Jan. 24, 2013 /PRNewswire/ -
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI) (Frankfurt: F4S.F) is pleased to announce that Compania Minera Cuzcatlan S.A. de C.V. (wholly owned subsidiary of Fortuna Silver Mines Inc.) and Plata Pan American S.A. de C.V. (wholly owned subsidiary of Pan American Silver Corp.) have entered into an acquisition and option agreement for the 6,254 hectare Taviche Oeste Concessions immediately surrounding the San Jose Mine in
Oaxaca, Mexico. Cuzcatlan will purchase a 55% undivided interest in the Taviche Oeste Concessions for a cash payment of
US$4.0 million. Once a production decision is made to develop ore from the Taviche Oeste Concessions, Cuzcatlan will purchase the remaining 45% undivided interest in the property for
Plata Pan American will retain a 2.5% net smelter royalty on ore production from this property. The transaction is expected to close
January 30th 2013.
"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,"
Jorge A. Ganoza, President and CEO commented. "We will be planning an aggressive exploration program to immediately follow up on targets that we have developed."
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in
Latin America. Our primary assets are the Caylloma silver mine in southern
Peru and the
San Jose silver-gold mine in
Mexico. The company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at
ON BEHALF OF THE BOARD