DJ Silver Lake Resources to Buy Integra Mining 

DJ Silver Lake Resources to Buy Integra Mining

Aug 05, 2012 (Dow Jones Commodities News via Comtex) --
By Rhiannon Hoyle

SYDNEY--West Australia-focused gold-mining company Silver Lake Resources Ltd. (SLR.AU) said Monday it will acquire Integra Mining Ltd. (IGR.AU), as the consolidation of Australia's gold sector gathers pace.

Under the deal, which Integra said its directors plan unanimously to recommend, Silver Lake will swap one new share in its business for every 6.28 Integra shares. The offer values Integra at A0.452 a share (US0.478 a share), or a total A422.4 million.

The offer is an almost 44% premium to Integra's last closing price of A0.315 a share.

"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," said Silver Lake Managing Director Les Davis in a statement.

Integra shareholders will ultimately hold around 40% of the combined company, which should be worth more than A1 billion. Silver Lake's market capitalisation currently stands at A640 million.

Gold producers St. Barbara Ltd. (SBM.AU) and Allied Gold Mining PLC (ALD.AU) announced in late June that they plan to form a A1 billion mid-tier mining company via a merger, which at the time was the 10th M&A transaction in the Australian gold mining sector since April, according to Dealogic.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

08-05-12 2031ET

Copyright (c) 2012 Dow Jones & Company, Inc.