Great Panther Silver Ltd (TSE:GPR) (NYSEAmerican:GPL) told investors Tuesday that it has completed the US$105 million acquisition of Beadell Resources Limited and officially changed its name to Great Panther Mining Limited.
In a statement, CEO James Bannantine said the Beadell deal would add roughly 200,000 of gold equivalent ounces for 2019 and push Great Panther into the ranks of intermediate precious metals producers.
“We are very pleased to close the important transaction that immediately transforms Great Panther into an intermediate precious metals producer with a strong and diversified portfolio of producing mines, advanced stage growth projects, and exploration assets,” said Bannantine in a statement.
The new metals producer will boast a diversified portfolio of producing mines in Mexico and Brazil and an advanced stage development project in Peru.
Great Panther operates three mines, including the Tucano Gold Mine in Amapá State, Brazil, and two primary silver mines in Mexico: the Guanajuato Mine Complex and the Topia Mine. Great Panther is also evaluating the restart of the Coricancha project in Peru and expects to make a decision on whether or not to restart the project by the end of March 2019.
Going forward, Bannantine says Great Panther’s focus will be on the integration of its Brazilian operations and advancing an exploration program to tap into the potential of the Tucano Gold Mine.
Beadell’s production of 123,000 gold ounces in proforma 2018 will complement Great Panther's own output of 4.17 million silver equivalent ounces.
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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.
As part of the acquisition, Dr Nicole Adshead-Bell, former CEO and managing director of Beadell, joins Great Panther’s board of directors.
Under the deal's terms, Great Panther acquired 100% of Beadell through the issuance of more than 103 million Great Panther shares to Beadell shareholders. The share exchange represents a ratio of 0.0619 Great Panther shares for each Beadell share.
Beadell's shares stopped trading on the Australian Securities Exchange on February 18 and are expected to be delisted on March 6, 2019.
Great Panther shares slipped C$.01 to finish at C$1.16 on Monday.
Contact Ellen Kelleher at [email protected]