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Re: News Release - Thursday, August 14, 2008
Fortuna Silver Mines To Acquire Continuum Resources And 100% Of
San Jose Project, Mexico
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August 14, 2008: 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 of Fortuna.
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
OF FORTUNA SILVER MINES INC.
"Simon Ridgway"
Simon Ridgway, Chairman
Symbol: TSX.V : FVI / Lima: FVI
CONTACT INFORMATION
840 -- 355 Burrard Street
Vancouver, BC V6C 2G8
Vancouver office: Erin Ostrom - (604) 484-4085
Lima office: Carlos Baca - (511) 616-6060 ext. 300
Website: www.fortunasilver.com
ON BEHALF OF THE BOARD
OF CONTINUUM RESOURCES LTD.
"Warren MacIntyre"
Warren MacIntyre, Director
Symbol: TSX.V : CNU
CONTACT INFORMATION
600 -- 595 Howe Street
Vancouver, BC V6C 2T5
Vancouver office: (604) 629-0000
Website: www.continuumresources.com
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
Associated File:
http://www.fortunasilver.com/i/pdf/FVI-Aug1408.pdf
13 KB in size, approx. 3 seconds to download at 56.6Kbps
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Copyright (c) 2008 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:news@goldgroup.com
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