Fortuna Silver to buy PE-backed Goldrock Mines for $129 mln

Fortuna Silver Mines Inc (NYSE: FSM, TSX: FVI) has agreed to acquire Goldrock Mines Corp (TSX-V: GRM), a Vancouver-based gold producer focused on the development of its Lindero gold deposit in Argentina. The deal implies an equity value of about $129 million. Goldrock's major shareholders include U.S. private equity firm Orion Mine Finance and Canadian firm Waterton Global Resource Management. They and other investors holding about 26 percent of the company's outstanding shares have agreed to support the acquisition. Fortuna, which is also Vancouver-based, said the combined entity will have two operating mines and a development project in three of the top mining jurisdictions in the Americas.

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