Australian gold miners Red 5 and Silver Lake Resources to combine in $1.5 bln merger (updated)

Vault Minerals

04/02/2024 23:00

(Updates with board and deal value details from paragraphs 2-5)
       Feb 5 (Reuters) - Australian gold miners Red 5  RED.AX 
and Silver Lake Resources  SLR.AX  said on Monday in a joint
statement that both companies will merge via a scheme of
arrangement, that would result in a combined value of about $1.5
billion.  
    Under the agreement, Red 5 will buy 100% of Silver Lake and
each Silver Lake shareholder will receive 3.434 Red 5 shares for
every Silver Lake share held. 
        Upon implementation of the transaction, Red 5
shareholders would hold around 51.7% of the merged entity, while
Silver Lake stakeholders will own the remaining 48.3%. 
  
        The miners said that the combined entity will be led by
Russell Clark as Chairman and Luke Tonkin as Managing Director
and CEO. 
  
        According to the statement, both companies are looking
to implement the arrangement by June 2024.
  

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Lisa
Shumaker and Chizu Nomiyama)
 ((Shivangi.Lahiri@thomsonreuters.com;))