Doray shareholders overwhelmingly back merger

ROUGHLY 99% of Doray Minerals shareholders have voted in favour of the company’s takeover by Silver Lake Resources.
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Doray's Deflector operation

Billed as a merger of equals, the deal will see Silver Lake issue 0.6772 of a share for each Doray share held, as well as 7.8c for every option held.

The enlarged company will hold the Mount Monger gold and Deflector gold-copper operations in Western Australia.

Doray chairman Julius Matthys said today was a significant day in the company's history.

"Investors, both large and small, in Australia and overseas, have been telling us for some time that they want to see Doray grow and diversify its asset base," he told shareholders.

"We have listened to those calls but wanted to carry out our operational transformation plan first.

"With Deflector now producing gold and copper safely and reliably and our cashflow having significantly reduced debt and strengthened our balance sheet, Doray is now able to focus on pursing the next phase of our growth strategy."

A court hearing to approve the scheme of arrangement will be held on Thursday morning in Perth.

If approved, Doray shares will cease trading next Friday.

The combined company will have a pro-forma market capitalisation of well over A$500 million.