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Silver Lake Resources Catches Attention Of Substantial Shareholder

Silver Lake Resources has received a vote of confidence from substantial shareholder Bank of Nova Scotia, which has increased its interest in the company.

Bank of Nova Scotia and its associate GCIC have bought up 3.97 million shares in on-market acquisitions at an average price of A$3.462 for total consideration of about A$13.7 million.

These newly acquired shares take Bank of Nova Scotia's total holding to 16.56 million, a 7.52% stake in Silver Lake.

Gold operations

The move follows a host of good news from Silver Lake in January. Early in the month the company revealed gold sales for the six months to December 2011 of 41,120 ounces, exceeding the forecast 35,000 to 40,000 ounces.

In addition, Silver Lake announced plans to acquire an advanced 1 million ounce gold exploration program through a Scheme of Arrangement with Phillips River Mining to merge Phillips River's assets into Silver Lake.

Following the merger the Philips River assets will be collectively known as the Great Southern Gold Project.

Great Southern has two discreet exploration projects, Kundip and Munglinup covering more than 2,500 square kilometres of tenements located in southeast Western Australia.

The acquisition has a transaction value of about $20 million.

The company also revealed in January that assays from reverse circulation drilling at the Comet Gold Project in Western Australia had identified potential for a fifth underground mine at the project.

This will be followed up with infill and extensional drilling.