The Australian gold producer has agreed to acquire Silver Lake by way of a scheme of arrangement. Credit: Aleksandar Grozdanovski/Shutterstock.

Australian gold producer Silver Lake Resources’ shareholders have given the green light to a merger with domestic peer Red 5.

This approval moves the companies closer to completing the deal through a scheme of arrangement. The merger terms dictate that Red 5 will acquire all shares of Silver Lake.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The next phase involves seeking the court’s endorsement, with a hearing set for 6 June 2024.

Should the court give its nod at this second hearing, Silver Lake plans to make the scheme legally binding by registering the court’s orders with the Australian Securities and Investments Commission the following day.

Trading of Silver Lake shares on the Australian Securities Exchange (ASX) is expected to be suspended from the close of business on 7 June 2024, assuming the scheme receives court approval.

See Also:

The finalisation of the merger, through the implementation of the scheme, is scheduled for 19 June 2024.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

At this juncture, eligible shareholders of Silver Lake are set to receive 3.434 Red 5 shares for each Silver Lake share they own, marking the culmination of the scheme of arrangement.

The deal, announced in February this year, is said to result in the creation of a diversified mid-tier gold company with four mining hubs in tier 1 gold jurisdictions of Western Australia and Ontario.

The merged entity is estimated to have an annual production capacity of 445,000oz for fiscal year 2024.

It will be headed by Luke Tonkin from Silver Lake as the managing director and CEO.