Corrs advises Silver Lake on merger with Red 5

Independent Australian law firm Corrs Chambers Westgarth has advised Silver Lake Resources on its proposed A$2.2 billion “merger of equals” with Red 5 Limited to create the fifth-largest gold producer on the ASX.

Silver Lake

Silver Lake has entered into a scheme implementation agreement with Red 5 and the two companies have agreed to merge under the Silver Lake Scheme of Arrangement, with the combined group owning 51.7% (Red 5) and 48% (0.3%) (Silver Lake) respectively.

The combined company will be led by Mr. Russell Clark (former Chairman of Red 5) and Mr. Luke Tonkin (former Managing Director and Chief Executive Officer of Silver Lake), with a Board of Directors composed of four directors each from Red 5 and Red 5 . Silver Lake Board. If implemented, the merger would create a leading mid-market gold company with diversified operations and a strong balance sheet that can pursue growth through a combination of highly complementary assets and balance sheets.

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Led by partner Russell Philip, Corrs worked on the transaction with a multi-disciplinary team from the Corporate, Energy & Natural Resources, Banking & Finance, Employment and Real Estate practice groups, including partners Peter Jarosek, Simon Reid, Giacomo Giorgi and Rebecca. Various consultation venues are provided.

Commenting on the matter, Corrs partner Russell Philip said: “Corrs is pleased to be working with Silver Lake on its proposed merger with Red 5. The transaction is a collaborative effort between two complementary gold producers to create additional value for both sets of shareholders. A great example.

“Leveraging the expertise of Corrs’ multiple practices was critical to delivering this significant transaction and underlines the firm’s ability to advise on the most strategic transactions in the energy and resources industry.”

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