08/11/2007 - 14:45

Silver Lake closes $30m IPO early

08/11/2007 - 14:45

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Perth-based gold exploration company Silver Lake Resources has closed its $30 million initial public offer early, due to significant public interest, the company has announced.

Silver Lake closes $30m IPO early

Perth-based gold exploration company Silver Lake Resources has closed its $30 million initial public offer early, due to significant public interest, the company has announced.

Silver Lake will issue 100 milllion shares at 30 cents each to raise the money, which it plans to use to finalise the purchase of Silver Lake's projects, re-open the Daisy Milano mine to recommence gold production and advance the neighbouring exploration program.

Silver Lake struck a deal in August with Perth-based Perilya Ltd to acquire Daisy Milano, located near Kalgoorlie, for $14.5 million. Perilya suspended mining operations in March this year.

The company also has the right to acquire tenements in the Murchison region under agreements with Royal Resources NL, Central West Gold NL, Tectonic Resources NL, Burnakura Pty Ltd and Alan Paul Rudd.

Silver Lake is chaired by Rex Minerals Ltd chairman Paul Chapman, who is joined on the board by managing director Les Davis, Chris Banasik, Minara Resources chief executive Peter Johnston, Brian Kennedy, David Griffiths and Gavin Cooke, who will serve as company secretary.

Patersons Securities Ltd served as lead manager to the deal, with KPMG serving as auditor and investigating accountants. Blakiston Crabb provided legal advice to the company.


 

The full text of a company announcement is pasted below

Perth based Silver Lake Resources Limited (Silver Lake), today announced the company's $30 million initial public offering (IPO) has closed early due to overwhelming interest and support for the offering. Paterson's Securities Limited acted as lead manager to the issue.

Silver Lake is an emerging gold producer and exploration company with a resource base of 830,000 ozs of gold across its portfolio of assets including the Mount Monger goldfield and its Murchison projects (Moyagee, Tuckabianna and Rothsay). Silver Lake has targeted projects with certain attributes including:

- Dominant position in a highly prospective region
- Sound economic indicators
- Near term production ability
- Existing JORC resources with significant growth potential
- Lack of prior systematic exploration

Proceeds raised under the offer will be used to finalise the purchase of Silver Lake's projects, re-open the Daisy Milano mine to recommence gold production and advance the neighbouring exploration program.

"We are delighted with the response we have had to the IPO with applications for shares in Silver Lake well in excess of the $30 million we were seeking. The interest in the company is a clear recognition of our corporate strategy, the quality of our projects and confidence in our team to progress our development and exploration plans," Managing Director, Les Davis, said.

"Silver Lake is also well placed to capitalise on the strong fundamentals of the gold market, where demand is strong and supply is decreasing," Mr Davis added.

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