(Adds details on deal)
April 26 (Reuters) - Canada's Fortuna Silver Mines Inc FVI.TO said on Monday it would buy Roxgold Inc ROXG.TO in a cash-and-stock deal valued at about C$1 billion ($884.32 million).
Fortuna, which has operations in Peru, Mexico, and Argentina, said it expects annual gold equivalent combined production of about 450,000 ounces following the deal. shareholders will receive 0.283 common shares of Fortuna and C$0.001 for each Roxgold common share held.
The exchange ratio implies a consideration of about C$2.73 per Roxgold share, a 42.1% premium to its last closing price.
After the merger, existing Fortuna and Roxgold shareholders will own about 64.3% and 35.7%, respectively, of the combined company.
($1 = 1.2439 Canadian dollars)