PERTH (miningweekly.com) – Gold miner Silver Lake Resources is expected to shortly start with the compulsory acquisition of the remaining shares in takeover target EganStreet Resources after taking an 84.11% interest in the company.
Silver Lake in August this year launched a A$52-million takeover for EganStreet, offering its shareholders 0.27 of its own shares for every EganStreet share held, valuing EganStreet shares at 40c each.
Earlier this month, the gold miner increased its offer consideration to 0.40 Silver Lake shares for every EganStreet share held, with the miner promising to further increase this offer consideration to 0.431 Silver Lake shares for every EganStreet share if the company obtained a 38% interest before the end of business on December 13.
With Silver Lake now gaining a majority interest in EganStreet, the company’s nonexecutive director, David Quinlivan, and its MD Luke Tonkin have now been appointed to the EganStreet board.
Quinlivan on Friday told Silver Lake shareholders that the acquisition of EganStreet would allow the company to consolidate an additional 454 000 oz of Joint Ore Reserves Committee-compliant resource and 235 000 oz of reserves at the Rothsay gold project, while providing a near-term development opportunity to introduce an additional high-grade ore source to an upgraded Deflector processing facility.
Silver Lake is targeting sales of between 215 000 oz and 230 000 oz for the 2020 financial year, with Quinlivan telling shareholders during the company’s annual general meeting, that it would spend A$18-million on exploration over the next year to advance high priority targets at its Mount Monger operation, through to an investment decision, and on defining resource extensions and additional near-mine resources at Deflector.