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Great Panther Mining Limited

Great Panther Silver says it's making good progress on $105M Beadell acquisition

Beadell is currently the operator of the 100% owned Tucano gold mine in Amapa State, northern Brazil,

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Great Panther Silver is a specialist in underground, narrow vein mines

Great Panther Silver Ltd (TSX:GPR) (NYSE:GPL) says it's progressing well towards completing the previously announced acquisition of Beadell Resources to create a  new precious metals producer focused on the Americas.

Beadell is currently the operator of the 100% owned Tucano gold mine in Amapa State, northern Brazil, and closing the deal hangs on certain arrangements relating to its outstanding US$10 million convertible debentures.

"We are advancing through the regulatory process in Australia and progressing well towards the completion of our acquisition of Beadell and expect respective meetings seeking shareholder approvals to take place early in 2019", said James Bannantine, Great Panther's president and CEO.

READ: Great Panther Silver poised to create new precious metals producer focused on the Americas with $105M Beadell buy

"This latest announcement is an important next step, as we are confirming our intention to offer to purchase the convertible debentures immediately after closing and amend the existing terms as required in the event of an acquisition," he added.

Bannantine noted that if the current debenture holders choose to continue to hold them, they will benefit from an improved credit profile.

"Otherwise, Great Panther has the balance sheet to purchase the convertible debentures and is also considering options to refinance," he said in a regulatory statement.

The $105 million deal to buy Beadell Resources creates a new entity focused on the Americas, and benefitting from a strong balance sheet and a diverse asset portfolio including three producing mines.

There would also be an advanced stage project, and significant exploration potential and "attractive" re-rating potential, Great Panther has previously said.

The combined company is expected to have proven and probable reserves of around 1.5 million ounces of gold and will result in a significant lift in pro forma gold and silver production.

Great Panther will contribute 4 million silver-equivalent ounces of production in 2018, and Beadell will add 130,000 gold ounces in 2018 and a further 163,000 ounces in 2019, with potential for further increase upon a positive decision to restart Coricancha in Peru.

Shares in Toronto added 2.53% to stand at $0.81.

Contact Giles Gwinnett at [email protected]

Follow Giles on Twitter @Gile74

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Price: $1.05

Market: TSX
Market Cap: $326.73 m
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