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Great Panther Silver's Beadell acquisition gets second endorsement from big name proxy advisory firm

The Vancouver-based miner said that now Glass Lewis & Co had recommended that shareholders vote in favor
A boardroom
A special meeting of Great Panther shareholders is scheduled for February 11 in Vancouver

Great Panther Silver Ltd (TSE:GPR) (NYSEAMERICAN:GPL) revealed it has received another endorsement for its proposed acquisition of Beadell Resources Ltd.

The Vancouver-based resource firm said that a second proxy advisory firm Glass Lewis & Co had recommended that shareholders vote in favor of the plan.

On January 16 this year, proxy advisory firm Institutional Shareholder Services Inc (ISS) also recommended shareholders vote in favor.

READ: Great Panther says proxy advisory firm ISS recommends shareholder support for Beadell deal

"The arrangement would create a geographically and developmentally diversified enterprise with clearer financial stability and a stronger ability to pursue attractive alternatives, including those related to (Great Panther's) Coricancha asset and Beadell's Tucano asset," said Glass Lewis.

Founded in 2003, Glass Lewis is based in San Francisco and is one of the most prominent proxy advisory services in the world.

Great Panther agreed in September last year to acquire Beadell for US$105 million. After closing the deal, the company plans to change its name to Great Panther Mining Ltd.

The proxy voting deadline for Great Panther shareholders is 9 am Pacific time on February 7. A special meeting of Great Panther shareholders is scheduled for February 11 in Vancouver.

The new metals producer will boast a diversified portfolio of producing mines in Mexico and Brazil, and an advanced stage development project in Peru.

Add to production stats

Beadell’s production of 123,000 gold ounces in proforma 2018 will complement its own output of 4.17 million silver equivalent ounces.

The combination will also add extensive reserve and resources, including 1.3 million ounces of gold in proven and probable reserves, and 2 million ounces of measured and indicated gold resources.

It's already been a busy news week for Great Panther Silver Ltd. Yesterday, it told investors it had lifted the mineral resource at its Topia mine in Mexico, supporting its plans to lift metals production by around 25% in 2019.

The higher confidence measured and indicated resource category was increased by 28% since the last estimate in 2014 to 475,900 tonnes at a grade of 461 g/t (grams per ton) silver, 1.35 g/t gold, 3.87% lead and 4.06% zinc.

That contains 14.77 million silver equivalent ounces.

"This update provides for a long mine life at Topia and supports the planned increase in processing capacity which is expected to increase 2019 production by approximately 25%. In addition, the conversion of inferred resources and further exploration potential provide a good opportunity to further extend mine life," said James Bannantine, the president and CEO.

Shares in Toronto were unchanged at $0.95.

Contact Giles at [email protected]

Follow him on Twitter @Gile74

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