PERTH (miningweekly.com) – The director of gold miner Doray Minerals has urged shareholders to vote in favour of a merger with fellow-listed Silver Lake Resources, after an independent review found the offer to be both fair and reasonable.
The two companies in 2018 struck a scheme implementation deed, under which 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.
If the scheme is approved by the majority of Doray shareholders, and if it gains court approval, the merger would be complete by April.