News: SLR UPDATE 1-Australian gold miners Red 5 and Silver Lake Resources to combine in $1.5 bln...

(Updates with board and deal value details from paragraphs 2-5)

Feb 5 (Reuters) - Australian gold miners Red 5 (RED) and Silver Lake Resources (SLR) said on Monday in a joint statement that both companies will merge via a scheme of arrangement, that would result in a combined value of about $1.5 billion.

Under the agreement, Red 5 will buy 100% of Silver Lake and each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held.

Upon implementation of the transaction, Red 5 shareholders would hold around 51.7% of the merged entity, while Silver Lake stakeholders will own the remaining 48.3%.

The miners said that the combined entity will be led by Russell Clark as Chairman and Luke Tonkin as Managing Director and CEO.

According to the statement, both companies are looking to implement the arrangement by June 2024.