Silver Lake keeps up pressure on St Barbara

Silver Lake Resources has made another move to buy St Barbara’s Gwalia operations, although the companies seemingly differ on whether it constitutes a new proposal.

The gold developer is still offering $370 million in cash and 327.1 million Silver Lake shares, which it said were valued at $348.2 million but highlighted that a major acquisition facility had progressed to the point where it was only subject to due diligence.

St Barbara has not been willing to progress to the due diligence stage, knocking back two proposals from the company.

In its pitch today, Silver Lake reiterated its support of L1 Capital Pty Ltd, which has a 9.34 per cent stake in St Barbara, and claimed that Baker Steel Capital Managers, another big shareholder, had called on St Barbara to defer the upcoming shareholder vote.

“If the St Barbara board listens to its major shareholders and grants due diligence access to Silver Lake on or before June 5 2023, there is still time for Silver Lake to complete those enquiries in order to be able to progress the Silver Lake proposal to the binding offer stage before St Barbara shareholders are required to vote on the Genesis proposal,” Silver Lake’s statement read.

Genesis currently has a binding offer on the table for St Barbara's Leonora assets.

St Barbara issued a statement to the market acknowledging Silver Lake’s nudge as a ‘resubmission’.

“St Barbara acknowledges receipt of the resubmission of the non-binding, indicative and conditional proposal.

Silver Lake first made its proposal for St Barbara public earlier this month.

Responding to its pursuer last week, St Barbara chair Kerry Gleeson said Silver Lake had waited until the 11th hour to demand the company entertain a disruptive and unrealistic two-week due diligence exercise.

Ms Gleeson also said Silver Lake had approached St Barbara twice, when it was also in talks with Red 5, and that Silver Lake failed to put in an indicative offer when invited to do so.

Silver Lake has sought to disprove that by including correspondence from St Barbara’s former chair Tim Netscher in response to the company’s proposal.

St Barbara shareholders are due to vote on the deal on June 20.

St Barbara shares last changed hands at 54 cents.

Silver Lake shares closed the day down 1.88 per cent to trade at $1.04.