Fortuna Silver Mines Inc. (TSX:FVI /
Lima Stock Exchange:FVI or the "Company") is pleased to announce that it has
closed the bought deal equity financing announced December
1, 2010 (the "Offering"). The Company has issued
11,500,000 common shares at a price of CAD$4.00 per common share for gross
proceeds of CAD$46,000,000.
The Offering was led by Canaccord
Genuity Corp. and included CIBC World Markets, BMO Capital Markets and
Cormark Securities Inc. (the "Underwriters"). In connection
with the Offering the Underwriters received a cash commission equal to 5% of
the gross proceeds raised through the Offering.
The proceeds of the Offering will be
used to fund development work at the San Jose
Project following commencement of production, exploration programs in Mexico and Peru, and
for working capital.
Stock Exchange has not reviewed and does not take responsibility for the
accuracy of this release.
This news release does not constitute an
offer to sell or a solicitation of an offer to sell any of the securities in
the United States. The securities have not
been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S Securities
Act") or any state securities laws and may not be offered or sold within
the United States or to U.S Persons unless
registered under the U.S Securities Act and applicable state securities laws
or an exemption from such registration is available.
Fortuna Silver Mines Inc. Is a growth-oriented silver 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 Project in Mexico. Fortuna is selectively pursuing additional
acquisitions opportunities. For more information, please visit our website at
Forward Looking Statements
Certain statements in this news release
constitute forward-looking statements and as such are based on an assumed set
of economic conditions and courses of action. These statements include the
expectations regarding the use of the proceeds from the Offering, and
descriptions of Fortuna's future plans, objectives or goals. There is a
significant risk that actual results will vary, perhaps materially, from
results projected depending on such factors as changes in general economic
conditions and financial markets, changes in prices for silver and other
metals, technological and operational hazards in Fortuna's mining and mine
development activities, risks inherent in mineral exploration, uncertainties
inherent in the calculation of mineral reserves, mineral resources, and metal
recoveries, the timing and availability of financing, governmental and other
approvals, political unrest or instability in countries where Fortuna is active,
labour relations and other risk factors.
ON BEHALF OF THE BOARD
President, CEO and Director
Fortuna Silver Mines Inc.