22/03/2019 - 14:47

Doray shareholders overwhelmingly support merger

22/03/2019 - 14:47

Bookmark

Save articles for future reference.

Over 99 per cent of Doray Minerals' shareholders have voted in favour of the company’s proposed $615 million merger with fellow locally-based gold miner Silver Lake Resources.

Doray shareholders overwhelmingly support merger
Leigh Junk will be a non-executive director on the new board.

More than 99 per cent of Doray Minerals' shareholders have voted in favour of the company’s proposed $615 million merger with fellow local gold miner Silver Lake Resources.

Under the deal, Silver Lake shareholders would be the majority owners of the merged entity with a 62.7 per cent share, while Doray shareholders would own the remaining 37.3 per cent.

Silver Lake’s current market capitalisation is around $391 million, while Doray’s is around $224 million.

Silver Lake managing director Luke Tonkin will lead the new company, while Doray managing director Leigh Junk will be a non-executive director on the board.

The final hurdle for the merger is a court hearing to approve the scheme of arrangement, which will be held on Thursday morning in Perth.

If approved, Doray shares will cease trading next Friday.

The merged entity will hold the Mount Monger gold and Deflector gold-copper operations in Western Australia.

Doray chairman Julius Matthys said today was a significant day in the company's history, with 99.2 per cent of the company's shareholders supporting the merger.

"Investors, both large and small, in Australia and overseas, have been telling us for some time that they want to see Doray grow and diversify its asset base," he said.

"We have listened to those calls but wanted to carry out our operational transformation plan first.

"With Deflector now producing gold and copper safely and reliably and our cashflow having significantly reduced debt and strengthened our balance sheet, Doray is now able to focus on pursing the next phase of our growth strategy."

Shares in Silver Lake closed flat at 77 cents, while shares in Doray closed were down 1 per cent to close at 50 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options