VANCOUVER, Aug. 14 /CNW Telbec/ - Fortuna Silver Mines Inc. and Continuum
Resources Ltd. are pleased to announce that an agreement has been reached
whereby Fortuna will acquire (the "Acquisition") all of the issued and
outstanding securities of Continuum. The shares of both companies are listed
on the TSX Venture Exchange.
The companies currently hold jointly the San Jose Project in Mexico
(Fortuna 76%; Continuum 24%). As a result of the Acquisition, Fortuna will own
100% of the Project, thus strengthening its position in that country.
Continuum has 124,052,503 shares outstanding, and Fortuna will issue to
the Continuum shareholders a total of 7.0 million shares, which is an exchange
ratio of approximately 0.0564 of a share of Fortuna for every one Continuum
share held. Stock options in Continuum held by non-insiders totaling
285,000 shares will be converted to options to purchase Fortuna shares, at the
same ratio. No other rights to purchase Continuum shares will be outstanding
at closing of the Acquisition.
The Acquisition is subject to regulatory and other approvals on behalf of
both companies, and the recently announced private placement financing of
Continuum has been cancelled. There will be no change of control or management
Management of Fortuna and Continuum believe that the single stronger
entity resulting from the Acquisition will be of significant benefit to the
shareholders of both companies.
ON BEHALF OF THE BOARD ON BEHALF OF THE BOARD
OF FORTUNA SILVER MINES INC. OF CONTINUUM RE
"Simon Ridgway" "Warren MacIntyre"
Simon Ridgway, Chairman Warren MacIntyre, Director
Symbol: TSX.V : FVI / Lima: FVI Symbol: TSX.V : CNU
CONTACT INFORMATION CONTACT INFORMATION
840 - 355 Burrard Street 600 - 595 Howe Street
Vancouver, BC V6C 2G8 Vancouver, BC V6C 2T5
Vancouver office: Erin Ostrom - Vancouver office:
(604) 484-4085 (604) 629-0000
Lima office: Carlos Baca -
(511) 616-6060 ext. 300
Website: www.fortunasilvermines.com Website: www.continuumresources.com
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Warren MacIntyre, Director, (604) 629-0000