Great Panther Silver Ltd (TSE:GPR) (NYSEAMERICAN:GPL) said Wednesday that the proxy advisory firm Institutional Shareholder Services Inc has recommended that shareholders vote in favor of the company’s acquisitions of Beadell Resources Ltd.
"The merger makes strategic sense as it will create a new emerging intermediate metals producer and will result in significant pro forma gold and silver production,” ISS said.
READ: Great Panther Silver agrees to accept from merger partner Beadell Resources US$3M in partial loan payment
“The combined company will also have an increased public float and broadened shareholder base, providing stronger liquidity and augmented scale in the capital markets.”
Vancouver-based Great Panther agreed in September to acquire Beadell for US$105 million. After completion of the deal, the company plans to change its name to Great Panther Mining Ltd.
The proxy voting deadline for Great Panther shareholders is 9am Pacific time on February 7. A special meeting of Great Panther shareholders is scheduled for February 11 in Vancouver.
The acquisition of Perth, Western Australia-based Beadell will create a company with mines in Mexico and Brazil, as well as what is described as an advanced-stage development project in Peru.
Combined mining output
Great Panther added that Beadell’s production of 123,000 gold ounces in 2018 will complement its own output of 4.17 million silver equivalent ounces.
Shares of Great Panther fetched C$0.84 in Tuesday’s Canadian trading. They slipped US$0.02 to US$0.65 in New York trading.
Earlier this week, Great Panther said it had agreed to accept from Beadell partial repayment of US$3 million for a loan.
Contact Dennis Fitzgerald at [email protected]