COURT GREENLIGHTS SILVER LAKE–RED 5 MERGER

Supreme Court of New South Wales Approves Scheme of Arrangement

Silver Lake Resources Limited (ASX: SLR) and Red 5 Limited (ASX) have received approval from the Supreme Court of New South Wales for their proposed merger.

The Court issued orders yesterday approving the scheme of arrangement, under which Red 5 will acquire 100% of Silver Lake shares. Silver Lake plans to lodge an official copy of the Court’s orders with the Australian Securities and Investments Commission today, making the scheme legally effective.

Following this, Silver Lake will delist from the ASX, and new Red 5 shares are set to begin trading on June 20. The merger, supported by Silver Lake shareholders earlier this week, will create a diversified mid-tier gold company, producing approximately 445,000 ounces annually.

Silver Lake, which acquired 11% of Red 5’s shares in September 2023, will see its shareholders receive 3.434 Red 5 shares for each Silver Lake share held. The companies stated, “The merger will provide Red 5 and Silver Lake shareholders with the opportunity to participate in a stronger combined group, delivering benefits not available on a standalone basis.”

The new management team will include Luke Tonkin from Silver Lake as Managing Director and CEO, Richard Hay from Red 5 as Chief Operating Officer, and Struan Richards from Silver Lake as Chief Financial Officer.

Post-merger, the company will own four gold projects: King of the Hills (KOTH), Deflector, and Mount Monger in Western Australia, and Sugar Zone in Ontario, Canada.

Goldman

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