Doray/Silver Lake deal gets major backer
PERTH (miningweekly.com) – The merger between gold miners Doray Minerals and Silver Lake Resources has won the backing of Doray’s largest shareholder Perennial Value Management, which holds a 12.94% interest in the company.
“It is pleasing to have received this commitment from Perennial, which represents a significant vote of confidence in the merits of the proposed merger with Doray shareholders,” said Doray MD Leigh Junk.
Junk said that the merger with Silver Lake would allow Doray shareholders to participate in the creation of a midtier gold company with two complementary and established gold camps in a Tier 1 mining jurisdiction.
“The independent expert has concluded that, in the absence of a superior proposal, the merger is fair and reasonable, and in the best interest of Doray shareholders,” she added.
Under the proposed merger, Doray shareholders will receive 0.6772 Silver Lake shares for every Doray share held, with Silver Lake shareholders holding a 62.7% interest in the combined company, and Doray shareholders a 37.3% share.
The merger will combine two high-grade gold operations, and will create a midtier company with a 2019 pro-forma production guidance of some 240 000 oz. The merged group will have a mineral resource base of 4.6-million ounces, with both the Deflector and Mount Monger operations offering a pipeline of in-mine and near-mine brownfield exploration targets.
Doray shareholders are expected to vote on the merger on March 22.
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