Bloomberg News

Fortuna Silver Advances After Minefinders Deal: Toronto Mover

January 23, 2012

Jan. 23 (Bloomberg) -- Fortuna Silver Mines Inc., a producer of the metal in Peru and Mexico, rose the most in more than three months after silver prices increased and Pan American Silver Corp. said it agreed to buy Minefinders Corp.

Fortuna, based in Vancouver, climbed 11 percent to C$6.28 at the close in Toronto, the biggest gain since Oct. 5. Silver Wheaton Corp., which buys and resells silver mined by other companies, increased 2.8 percent. Endeavour Silver Corp., which mines in Mexico, rose 1 percent.

Silver futures for March delivery gained 1.9 percent to $32.27 an ounce on the Comex in New York after touching $32.775, the highest since Dec. 8.

“Fortuna and Endeavour Silver are very leveraged to the silver price,” Chris Thompson, a Vancouver-based analyst at Haywood Securities Inc., said in a telephone interview. “That would underpin the positive movement in the marketplace.”

Pan American will pay about C$1.5 billion ($1.49 billion) for Vancouver-based Minefinders, which has operations in Mexico, the companies said today. At C$15.60 a share, the offer represents a 32 percent premium to Minefinders’ 20-day trading average price prior to the announcement.

--Editors: Simon Casey, Steven Frank

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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