Australian gold miner Red 5 to acquire 100% of Silver Lake Resources
Australian gold miner Red 5 will takeover rival Silver Lake Resources to build a mid tier gold company valued at $1.5-billion, the two companies said in a joint statement on Monday.
The merged entity will eventually lead to creating a diversified mid-tier gold company, with a combined gold production profile of about 445 000 oz/y for fiscal year 2024.
Shares of Silver Lake dropped as much as 14.0% as at 00:10 GMT to top losses on the benchmark S&P/ASX 200, which was down 1.1%. The Red 5 stock slipped about 3.7%.
Under the agreement, each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held.
Upon implementation of the transaction, Red 5 shareholders would hold around 51.7% of the merged entity, while Silver Lake stakeholders will own the remaining 48.3%.
The miners said the combined company would be led by Russell Clark as chairman and Luke Tonkin as managing director and CEO. They added that Struan Richards would be appointed as chief financial officer of the firm.
"The increased scale, diversification and financial strength of the new company that will be formed via this transaction will be primed for continued strong cash flow generation and further growth," said Tonkin, current MD of Silver Lake Resources.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation