viewEgan Street Resources Ltd

EganStreet Resources has closing date of takeover offer extended to November 1

Under the offer each EganStreet shareholder will receive 0.27 Silver Lake Resources shares for every EganStreet share held.

EganStreet Resources Ltd - EganStreet Resources has closing date of takeover offer extended to November 1
Silver Lake Resources has increased its substantial stake in the company to 20.07%

EganStreet Resources Ltd’s (ASX:EGA) substantial shareholder Silver Lake Resources Limited (ASX:SLR) has increased its stake to 20.07% and extended the closing date of its takeover bid to 7pm (AEST) on November 1, 2019.

Silver Lake has acquired an additional 2,085,449 shares since September 4 as a result of acceptances from the off-market takeover bid, lifting its interest from 18.56%.

In a supplementary bidder’s statement dated September 10, 2019, Silver Lake also advises that the offer was freed of the options offer defeating condition.

$522 million enterprise value implied

In late July EganStreet’s board recommended that the offer, which implies a $522 million total transaction enterprise value, be accepted.

Each EganStreet shareholder will receive 0.27 Silver Lake shares for every EganStreet share held.

This offer values EganStreet at 40 cents per share which represents a premium of 28.9% to the close price of 31 cents, which was the price of shares on ASX at the close of trading on July 29, 2019.

It also represents a premium of 24.2% to the 5-day volume-weighted average price (VWAP) of 32.2 cents up to and including July 29 and 43.4% to the 30-day VWAP of 27.9 cents up to and including July 29.

EganStreet last traded at 28.5 cents and Silver Lake at $1.01.

Rothsay is key asset

The company’s key asset is the 100%-owned Rothsay Gold Project, a high-grade, underground project about 85 kilometres southeast of Silver Lake’s Deflector mine and processing hub.

In early August 2019, Egan updated the project’s ore reserve estimate by 18% to 235,000 ounces of gold grading 4.5 g/t.

The reserve is part of the 454,000-ounce JORC-compliant resource grading 9.2 g/t gold.

Under EganStreet’s stewardship, Rothsay has progressed through the exploration and study phase, with the release of an updated definitive feasibility study confirming the technical viability of the project in February 2019.

The Rothsay Mining Proposal was approved by the Western Australian Department of Mines, Industry Regulation and Safety in June 2019.

Quick facts: Egan Street Resources Ltd

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Market: ASX
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