Thomson Geer advises Chesser Resources on A$89M all-scrip acquisition by Fortuna Silver Mines

May 10, 2023

Thomson Geer is advising ASX-listed gold company Chesser Resources Limited (ASX:CHZ) on its proposed acquisition by Canada-based global precious metals miner, Fortuna Silver Mines Inc., in an all-scrip deal valuing Chesser at A$89 million.

The proposed acquisition, to be implemented via a scheme of arrangement, would see Chesser shareholders receive 0.0248 Fortuna shares per Chesser share, representing an implied value of A$0.142 per Chesser share. Fortuna is listed on the Toronto Stock Exchange, the New York Stock Exchange and Frankfurt Stock Exchange.

The proposal represents a 95 per cent premium to Chesser's last share price before the transaction was announced.

Chesser has a number of gold projects in Senegal, in Western Africa. Fortuna operates mines in Peru, Argentina, Mexico and Burkina Faso and Cote d'Ivoire.

The Board of Chesser has unanimously recommended shareholders vote in favour of the scheme in the absence of a superior proposal and subject to an independent expert concluding the scheme is in shareholders' best interests.

Thomson Geer's work involved coordinating a cross-border team of advisers, including Canadian law firm Stikeman Elliott, and negotiating the full suite of transaction documents.

The Thomson Geer team was led by Partner Scott Gibson who said: "We are delighted to assist the Chesser team with this transaction which offers Chesser's shareholders a substantial premium for their shares together with future exposure to Fortuna's quality assets."

Scott was supported by Partner David Church and Lawyer Dan Smailes.

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