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Silver Lake in A$2.2 Billion Merger with Red 5

Silver Lake in A$2.2 Billion Merger with Red 5


Leading Australian law firm Corrs advises Silver Lake Resources on a significant A$2.2 billion merger with Red 5 Limited

Chambers Westgarth, Australia's premier independent law firm, has played a pivotal role in advising Silver Lake Resources on a substantial A$2.2 billion merger with Red 5 Limited. The proposed 'merger of equals' aims to establish the ASX's fifth-largest gold producer.

The agreement, facilitated through a scheme implementation deed, outlines a merger via a Silver Lake scheme of arrangement. The merged entity is anticipated to be owned 51.7% by Red 5 and 48.3% by Silver Lake. The leadership of the new company will be helmed by Mr. Russell Clark, the current Red 5 Chairman, and Mr. Luke Tonkin, the existing Silver Lake Managing Director & CEO. The merged board will comprise four directors from each of the current Red 5 and Silver Lake boards.

This strategic merger is set to create a prominent mid-tier gold company with diversified operations and a robust balance sheet. The combined strengths of highly complementary assets and balance sheets position the new entity for growth opportunities.

Corrs, led by partner Russell Philip, provided comprehensive advice on all facets of the transaction. The multidisciplinary team harnessed expertise from the corporate, energy and natural resources, banking and finance, employment, and property practice groups. Notable contributors include partners Peter Jarosek, Simon Reid, Giacomo Giorgi, and Rebecca Field.

Russell Philip, a partner at Corrs, expressed delight in collaborating with Silver Lake on this significant merger. He emphasized the synergy between two complementary gold producers working together to enhance value for shareholders. The transaction showcases Corrs' prowess in advising on strategically vital deals within the energy and resources industry, drawing upon expertise across diverse practice groups.