Doray Minerals’ largest shareholder has voiced its approval of the proposed gold merger between Doray and Silver Lake Resources announced last November.
Perennial Value Management, which owns 12.94 per cent of Doray, is getting behind the deal in what Doray managing director Leigh Junk called a “significant vote of confidence” in the merger.
The Australian-owned company provided a written statement to Doray stating it would consent to Silver Lake’s share scheme subject to the absence of a superior proposal.
Doray and Silver Lake entered into a binding scheme implementation deed for the latter to purchase 100 per cent of Doray last year. This would see Silver Lake emerge with a 62.7 per cent ownership of the newly formed company, but shareholders have been slow to warm to the bid.
“As disclosed in the scheme booklet, the merger with Silver Lake will allow Doray shareholders to participate in the creation of a mid-tier gold company with two complementary and established gold camps in a Tier 1 mining jurisdiction,” Junk said.
The new company is expected to have a market capitalisation of $421 million should the deal be completed, with Doray being valued separately at around $157 million at Silver Lake’s offer price.
Silver Lake’s primary focus is the Mount Monger project, which hosts a 3.72 million ounces mineral resource and consists of three underground mines and one open pit mine.