(MENAFN- ProactiveInvestors - Australia) Silver Lake Resources (ASX: SLR) and Integra Mining (ASX: IGR) have implemented their merger creating one of the largest all Australian gold producers.
The combined company has a 6.6 million ounce Resource base and forecast production of over 400,000 ounces per annum in 2014.
It also has Reserves of 1.8 million ounces, mill capacity of 3.4 million tonnes per annum in the 2013 financial year and a landholding of 5,000 square kilometres.
The scheme of arrangement will provide the ability to unlock significant operational synergies between the adjacent Mount Monger and Randalls gold projects in the Eastern Goldfields of Western Australia.
Deferred settlement trading of Silver Lake New Shares will cease at the close of trading today and will resume normal trading on Monday, 14 January 2013.
First settlement of all trades of Silver Lake New Shares conducted on the ASX on a deferred settlement basis will occur on 17 January 2013.
Integra will apply for termination of the official quotation of Integra Shares on the ASX and will apply to have itself removed from the official list of the ASX on 14 January 2013.
Merger advantages
The advantages of the merger are significant, particularly the financial benefits which include:
- Substantial cost savings delivered through clear synergies;
- Increased cashflow to internally fund growth plans; and
- Robust profitable business.
Risk diversification is another important advantage, with the merged entity having multiple mines and mills, operationally flexibility and complimentary skill sets.
Second gold production centre
Further expanding the company's growth, Silver Lake is also working to commission its second gold production centre at the Murchison Project.
In 2013, the company will complete the milling facility and ramp-up ore mining with the first gold bar to be produced in the March 2013 quarter.
The aim is to achieve a 1.2 million tonne mill throughput rate per annum.
The Murchison gold project has a current resource of 25.3 million tonnes at 2.8g/t for 1.9 million contained gold ounces.
The base case production plan has ore being sourced from 14 open pit and four underground mines at various stages over an eight to 10 year mine life.
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