Red 5, Silver Lake form mid-tier gold company

Photo: Red 5

Western Australia-based miners Red 5 and Silver Lake Resources have entered into a merger of equals, creating a diversified gold producer with a significant ore reserve and mineral resource inventory of 4 million ounces and 12.4 million oz., respectively.

Under the terms of the transaction, Red 5 will acquire 100% of the shares in Silver Lake and each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held. This will result in Red 5 shareholders owning 51.7% of the merged group and Silver Lake shareholders owning 48.3%.

The new entity will be led by Red 5’s Russell Clark as chairman and Silver Lake’s Luke Tonkin as managing director and CEO. The new board of directors will comprise four directors from each of the current Red 5 and Silver Lake boards.

Silver Lake owns the Mount Monger operation and the Rothsay underground gold mine in Western Australia. Red 5 owns the King of the Hills gold mine and processing hub and the Darlot underground mine, both located in Western Australia’s Eastern Goldfields Region.

Source: Red 5

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