Mill at Harte Gold’s Sugar Zone Mine. Source: Harte Gold
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  • Silver Lake Resources (SLR) has won its bid to acquire TSX-listed gold mining company Harte Gold
  • Silver Lake also expects to acquire two per cent net smelter royalty (NSR) for consideration of US$22 million (A$30.5 million) payable in Silver Lake shares
  • Acquisition of the royalty is subject to completion of the Harte Gold acquisition, which requires approval of the subscription agreement by the Court as the successful bid pursuant to an approval and vesting order
  • A court hearing is expected to be convened this month with the transaction close expected by the second half of February
  • Shares in Silver Lake Resources are up 0.38 per cent to $1.85 as of 1:49 pm AEDT

Silver Lake Resources (SLR) has won its bid to acquire TSX-listed gold mining company Harte Gold.

The Harte Gold SISP was approved by the Ontario Superior Court of Justice late last December and completed a week ago.

Silver Lake’s bid pursuant to the subscription agreement was subsequently declared the successful bid two days ago.

The consideration payable by SLR under the agreement as well as further details on the agreement and SISP were detailed by the company last December.

Silver Lake has also entered into an agreement with private equity investor in mining Appian to acquire its aggregate two per cent net smelter royalty (NSR) payable on production from the Sugar Zone mine and on the entire Sugar Zone property.

The company will acquire the NSR for US$22 million (A$30.5 million), payable in Silver Lake shares to be priced at the five-day volume-weighted average price (VWAP) prior to closing.

Silver Lake says the acquisition and subsequent elimination of the NSR will reduce operating costs and increase operating cashflows, while increasing the company’s leverage to higher gold prices and the significant exploration potential of the Sugar Zone mine and the entire Sugar Zone property.

Acquisition of the royalty is subject to completion of the Harte Gold acquisition, which requires approval of the subscription agreement by the Court as the successful bid pursuant to an approval and vesting order.

A court hearing is expected to be convened this month with the transaction close expected by the second half of February.

Shares in Silver Lake Resources are up 0.38 per cent to $1.85 as of 1:49 pm AEDT.

SLR by the numbers
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