PERTH (miningweekly.com) – Gold miner Silver Lake Resources has increased its bid for fellow-listed EganStreet Resources.
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.
The company has now increased the offer consideration to 0.40 Silver Lake shares for every EganStreet share held, with the miner on Wednesday saying that it would 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.
Silver Lake currently holds a 34.33% interest in the takeover target.
EganStreet holds the Rothsay gold project, which is about 85 km south-east from Silver Lake’s Deflector mine and processing hub.
Silver Lake previously told shareholders that the acquisition of EganStreet would allow the company to consolidate an additional Joint Ore Reserves Committee- (Jorc-) compliant resource of 454 000 oz and a Jorc-compliant reserve of 200 000 oz at the Rothsay gold project, and would provide a near-term development opportunity to introduce a new high-grade ore source to an upgraded Deflector processing facility.