Sunday, 19 February 2012

Silver Lake Resources to complete due diligence for 1moz gold project acquisition this week

Silver Lake Resources (ASX: SLR) has advised that the due diligence period for the company’s acquisition of an exploration project from Phillips River Mining (ASX: PRH) will conclude at the end of this week.

The asset to be acquired comprises a JORC Resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper along with numerous targets, and will be known as the Great Southern Gold Project following the acquisition.

Significantly, the Great Southern Gold Project acquisition provides Silver Lake with a third potential production centre and increases the company’s assets to 4.3 million ounces of gold, including 442,000 ounces of reserve.

Silver Lake will also have 10 million ounces of silver and 95,000 tonnes of copper across the company’s three project centres.

Consideration for the acquisition is $20 million, or about 2.5% of Silver Lake’s current market capitalisation.

The due diligence condition precedent for the merger agreement has been extended from February 18 to February 24, 2012 to allow for the continuing review of Phillips River’s existing legal contractual arrangements.

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