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Fortuna Silver posts second-quarter sales drop, but makes bid for Mexican gold and silver assets

Vancouver's Fortuna Silver Mines Inc. (TSX-V:FVI) reported an $11% drop in revenue in its second quarter, which ended June 30. Revenue fell to $7.8 million from $8.8 million compared with the same period a year ago.

Vancouver's Fortuna Silver Mines Inc. (TSX-V:FVI) reported an $11% drop in revenue in its second quarter, which ended June 30.

Revenue fell to $7.8 million from $8.8 million compared with the same period a year ago.

The company also posted net second-quarter income of $2.4 million, which is up from $949,000 in 2007's second quarter. The increase, according to Fortuna, was due primarily to gains made in commodity contracts hedging against price fluctuations on the metals markets.

Last week, the company made a bid to acquire Continuum Resources Ltd. (TSX-V:CNU) in an all-share deal worth $8.8 million. The deal would give Fortuna 100% ownership of southern Mexico's San Jose silver and gold project.

Fortuna's share price range during the past week: between $1.16 and $1.28; 52-week high: $3.96; 52-week low: $1.13.