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Silver Lake Agrees To Acquire EganStreet For $52 Million

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(Kitco News) - Silver Lake Resources Ltd. (ASX: SLR) and EganStreet Resources Ltd. (ASX: EGA)  have agreed to a “bid implementation deed” in which Silver Lake will acquire all outstanding ordinary shares of EganStreet, the companies announced Tuesday.

The terms call for each EganStreet shareholder to receive 0.270 Silver Lake share for every EganStreet share. This values EganStreet at 40 cents per share, implying a value of $52 million, the companies said. This represents a premium of 28.9% of the last closing price of EganStreet’s shares on the Australian Securities Exchange.

The EganStreet board of directors unanimously recommends that EganStreet shareholders accept the offer, the companies said. They also reported that EganStreet’s largest shareholder, Lion Selection, has entered into a pre-bid acceptance deed.

EganStreet’s key asset is the Rothsay gold project, which is a high-grade, underground gold project located approximately 85 kilometers southeast of Silver Lake’s Deflector mine and processing hub. Rothsay currently has JORC resources of 454,000 ounces and reserves of 200,000 ounces.

“The acquisition of EganStreet and its Rothsay gold project is consistent with Silver Lake’s strategy of creating new opportunities to compete for capital and maximizing the value of the existing asset base,” said Luke Tonkin, managing director of Silver Lake. “Silver Lake’s nearby infrastructure at Deflector can unlock additional value at Rothsay, and this is reflected in the share price premium offered to EganStreet shareholders.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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