Silver Lake signs agreement to acquire Phillips River Mining assets

25 March 2012 (Last Updated March 25th, 2012 18:30)

Silver Lake Resources has entered into an agreement to acquire certain assets of Phillips River Mining for a total consideration of $20m.

Silver Lake Resources has entered into an agreement to acquire certain assets of Phillips River Mining for a total consideration of $20m.

The company will acquire Phillips River's Kundip gold project and other mining tenements and assets unrelated to the Trilogy project in Western Australia.

Silver Lake will issue Phillips River with 2,935,294 fully paid ordinary shares in the capital of Silver Lake for the assets.

The company will also acquire Phillips River's Trilogy polymetallic project in exchange for 2,294,118 shares.

The sale is subject to Phillips River obtaining shareholder approval among other conditions, including resolution of the issues between Phillips River and LN Metals International zinc and a lead off-take agreement to the satisfaction of Silver Lake.

In January 2012, Silver Lake Resources and Phillips River Mining announced the terms of a proposed Scheme of Arrangement, which was terminated earlier this month.

The parties have now entered into an exclusivity deed, pursuant to which Silver Lake and Phillips River agreed to certain exclusivity arrangements in relation to Silver Lake's proposal to acquire Phillips River's assets.