Red 5 and Silver Lake Resources announce merger to create leading mid-tier gold company

• Red 5 (ASX:RED) and Silver Lake Resources (ASX:SLR) announce a merger to form a leading mid-tier gold company
• Both parties announced the plans to create a diversified company with a combined gold production profile of 445,000 thousand ounces and a strong balance sheet for growth
• Russell Clark will take on the role of Chairman, and Luke Tonkin will lead as Managing Director and CEO
• RED last traded at 33 cents; SLR last traded at $1.10

Red 5 (ASX:RED) and Silver Lake Resources (ASX:SLR) have entered into a binding scheme implementation agreement to merge and create a leading mid-tier gold company.

Both parties announced the formation of a diversified company with a combined gold production profile of 445,000 thousand ounces and a strong balance sheet for growth

Silver Lake will be acquired by Red 5, offering “a highly complementary combination of assets and balance sheets for the mutual benefit of both shareholders,” according to Silver Lake Managing Director Luke Tonkin.

The transaction involves Red 5 acquiring 100 per cent of Silver Lake’s shares, with each Silver Lake shareholder receiving 3.434 Red 5 shares for every share held.

Red 5 shareholders will hold 51.7 per cent of the merged entity, while Silver Lake shareholders will retain 48.3 per cent.

Russell Clark will take on the role of Chairman, and Luke Tonkin will be the Managing Director and CEO.

The combined board of directors will include four members from each of the existing Red 5 and Silver Lake boards.

RED last traded at 33 cents; SLR last traded at $1.10.