PERTH (miningweekly.com) – The shareholders of gold miner Doray Minerals on Friday approved a merger with fellow-listed Silver Lake Resources.

Under the proposed merger, Doray shareholders will receive 0.6772 Silver Lake shares for every Doray share held. Silver Lake shareholders will hold a 62.7% interest in the combined company, and Doray shareholders a 37.3% share.

Doray chairperson Julius Matthys told shareholders on Friday that the merger would create an enlarged group with two strongly performing gold operations in Western Australia, and a balance sheet that would enable the company to extract maximum value from its asset, while pursuing a committed, but disciplined strategy of growing shareholder wealth.

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.

“Investors both large and small, in Australia and overseas, have been telling us for some time that they want to see Doray grow and diversify its asset base. We have listened to those calls, but wanted to carry out our operational transformation plan first.

“With Deflector now producing gold and copper safely and reliably and our cashflow having significantly reduced debt and strengthened our balance sheet, Doray is now able to focus on pursuing the next phase of our growth strategy,” said Matthys.

The transaction will face court scrutiny on March 28, and if approval is given, the scheme will be implemented on April 5.

Doray shares are likely to cease trading on March 29, with the company to be removed from the ASX on April 9, or as otherwise determined by the ASX.