Silver Lake Agrees To Buy Integra Mining For A$426 Million
Silver Lake is an ASX 200 gold producing and exploration company with a resource base of 4.5 Moz in highly prospective regions including Mount Monger and the 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.
The Australian gold producer, offered to buy Integra Mining Ltd. (IGR) for A$426 million ($450 million) in shares to expand output.
Silver Lake is offering 1 new share for every 6.28 of its target, or 45.2 cents a share, Perth-based Silver Lake said today in a statement. That’s a 44 percent premium or A$426 million ($450 million) based on Friday’s closing price.
The deal to create a gold miner with a market value of nearly $1 billion.
“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,” Les Davis, Silver Lake’s managing director, said in the statement.
Acquiring Integra may double Silver Lake’s annual output to as much as 250,000 ounces in 2012. Silver Lake and Integra said the deal would create a gold producer boasting a 6.6 million ounce resource base, with current production of 200,000 ounces projected to more than double in 2014. They added the combined firm would have A$107 million in cash.
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