Silver Lake Resources buys Integra Mining
Silver Lake Resources has said it will merge with Integra Mining to create a gold company with several Australian operating mines and mills.
Under an Integra Scheme of Arrangement, Integra shareholders will be offered one new Silver Lake share for every 6.28 Integra shares they hold.
The offer values Integra at A$426 million (45.2 cents per share) and represents a premium of 43.6% on Integra's closing price of A$0.315 on the ASX on 3 August 2012.
Following the transaction, the combined company's annual production will increase to over 400,000oz in 2014.
Silver Lake and Integra will now have combined mineral resources of 6.6Moz, including 1.8Moz of ore reserves, with the potential for mining between the adjacent Mount Monger and Randalls gold projects in the Eastern Goldfields of Western Australia.
Silver Lake managing director Les Davis said, "This transaction will further diversify Silver Lake's asset portfolio with increased gold production, enhanced cash flows, near term organic growth and significant exploration upside," Davis added.
Integra managing director Chris Cairns said, "Investors are increasingly attracted to gold mining companies, which enjoy the lower risk and economies of scale associated with multiple operations."