Doray Minerals Limited (ASX:DRM) has received a written statement confirming major shareholder Perennial Value Management’s intention to vote in favour of the share scheme that would merge Doray with Silverlake Resources Ltd (ASX:SLR).
Perennial holds 57,821,439 Doray shares as of March 12, 2019, comprising 12.94% of Doray’s issued share capital.
Doray’s directors also intend to vote their shares in favour of the Share Scheme.
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-one 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.”