Silver Lake Resources and Red 5 will merge in a deal that is set to create a ~445,000 ounce per annum diversified mid-tier gold company.
Silver Lake acquired 11 per cent of Red 5’s shares back in September 2023. Now, Silver Lake shareholders are set to receive 3.434 Red 5 shares for every Silver Lake share held.
By combining the two companies, the merged company will sit just behind Regis Resources in gold production per annum, firmly establishing it as a mid-tier company.
The first court hearing to progress the merger is set for mid-to-late April, with implementation expected by June.
Once the merger is finalised, the company will have ownership of four gold projects: King of the Hills (KOTH), Deflector and Mount Monger in WA, and Sugar Zone in Ontario, Canada.
The presentation said the merger will “provide Red 5 and Silver Lake shareholders with the opportunity to participate in a stronger combined group, delivering benefits not available on a standalone basis”.
The merged group management team will be led by Luke Tonkin from Silver Lake as managing director and chief executive officer. Tonkin will be supported by Richard Hay from Red 5 as chief operating officer and Struan Richards from Silver Lake as chief financial operator.
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