Silver Lake Resources (ASX: SLR) has reached an agreement to purchase the assets of Phillips River Mining (ASX: PRH), which will give Silver Lake a third potential production centre along with a number of targets to follow up.
The agreement includes the Kundip Mining Centre, which has a JORC Resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper contained in two main mining centres within 10 kilometres of each other. Kundip has been subject to a Definitive Feasibility Study.
Silver Lake will purchase the assets for consideration of about $20 million. In addition, the company has agreed to take up the Trilogy polymetallic project, which includes the Myamba farm and infrastructure on the farm.
Consideration for the Trilogy acquisition is 2.29 million Silver Lake shares, and settlement is subject to the completion of the Kundip and Other Assets sale.
A convertible note provided to Phillips River to meet immediate funding requirements has been amended to allow Silver Lake to subscribe for up to 19.9% of Phillips River's share capital, subject to shareholder approval.