The largest shareholder of Doray Minerals (ASX: DRM) has thrown its significant support behind the Perth-based gold miner’s $609 million scrip merger with Silver Lake Resources (ASX: SLR). Perennial Value Management has told Doray it intends to vote its 12.94% stake in favour of the merger at next week’s scheme meeting. Investor feedback since Doray and Silver Lake announced their merger plan in November has been overwhelmingly positive. It comes at a time when the market is looking for consolidation in the gold sector. A merged Doray-Silver Lake will have annual production of about 240,000 ounces and about $116 million in cash and equivalents. Doray’s shares have risen from 36c to 49c since the merger was announced. Silver Lake has experienced a similar share price appreciation.
Doray Minerals (ASX: DRM) has provided an update on its proposed merger with Silver Lake Resources (ASX: SLR), which notably includes a tick of approval from the Company’s largest shareholder, Perennial Value Management.
Receipt of Shareholder Voting Intention Statement
Doray is pleased to advise that Perennial Value Management has provided Doray with a written statement confirming its intention to vote its shares in favour of the Share Scheme, subject to no superior proposal emerging.
Perennial Value Management is the holder of 57,821,439 shares as at 12 March 2019, comprising 12.94% of Doray’s issued share capital, and has consented to the disclosure of its intention in this announcement.
As previously announced, the Directors of Doray also intend to vote their shares in favour of the Share Scheme, subject to no superior proposal emerging.
Commenting on Perennial’s support, Doray Minerals Managing Director Leigh Junk said: “It is pleasing to have received this commitment from Perennial, which represents a significant vote of confidence in the merits of the proposed merger for Doray shareholders.
“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.
“The Scheme Booklet also disclosed that the merged group is expected to receive increased investor interest due to operational diversity, strong free cash flow generation and the balance sheet strength to pursue and fund growth opportunities embedded in the portfolio to maximise the full potential of existing operations.
“The Independent Expert has concluded that, in the absence of a superior proposal, the merger is fair and reasonable and in the best interests of Doray shareholders.”
Doray Encourages All Shareholders and Optionholders to Vote Doray takes this opportunity to remind all Doray shareholders and optionholders (together, Securityholders) of the upcoming Scheme Meetings relating to the Share Scheme and Option Scheme.
