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Junior explorer sells goldmine to suitor

By · March 26, 2012 · 10:28 am · Leave a Comment

 

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JUNIOR minerals explorer Phillips River has agreed to sell its flagship assets to its former suitor.

Goldminer Silver Lake yesterday said it had agreed to buy Phillips River’s Kundip gold and copper exploration project and the Trilogy gold, silver, lead and zinc deposit, both in Western Australia, for about $20 million worth of Silver Lake shares.

The deal included the decommissioned RAV 8 nickel mine in WA, Phillips River said in a statement.

Phillips River shares soared 6c, or 41.38 per cent, to 20.5c while Silver Lake put on 16c, or 5 per cent, to $3.36.

Silver Lake early this month backed out of a deal to take over Phillips River in a $20m scrip-based transaction because it was unlikely that a lead and zinc offtake deal for Trilogy would be honoured in time.

Silver Lake agreed, when it terminated the takeover, to buy Phillips River’s Munglinup gold exploration project in WA for $325,000.

Silver Lake yesterday said it had amended a convertible note facility to allow it to take a stake in Phillips River of up to 19.9 per cent.

If approved by shareholders, the share subscription would provide Phillips River with $1.8m in cash to meet funding and liquidity requirements, Silver Lake said in a statement.

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