Silver Lake Resources Limited (SLR) and Integra Mining Limited (IGR) are pleased to announce that they have reached agreement to combine the two companies and create a substantial gold company with multiple Australian operating mines and mills. Under the Scheme, Integra shareholders will be offered one new Silver Lake share for every 6.28 Integra shares they hold.
The Silver Lake offer values Integra at A$426 million1 (45.2 cents per share) and represents an attractive premium of 43.6% to Integra’s closing price of A$0.315 on the ASX on 3 August 2012 and a 40.3% premium to Integra’s 20‐day volume weighted average price (VWAP) of A$0.307.
“The strategic and financial logic of the combination is clear, driven by the complementary nature of the two companies’ projects and the strong organic growth profile of the combined business. 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.” Integra Managing Director, Chris Cairns, said: “We are very proud of the achievements of the entire Integra team and, while we believe that Integra would have had a bright future as an independent company, the compelling logic of this combination for Integra shareholders could not be ignored.
Silver Lake is an ASX 200 gold producing and exploration company with a resource base of 4.5 million oz in highly prospective regions including the Mount Monger and Murchison goldfields and the Great Southern district of Western Australia. Silver Lake’s strategy is to develop large production centres at Mount Monger, in the Murchison and the Great Southern with multiple mines at each centre. Silver Lake’s Mount Monger Operation contains the Daisy Milano, Daisy East, Rosemary & Haoma underground mines and the Wombola open pit mines located 50 km south east of Kalgoorlie.