SLR shareholders voted to approve the Scheme of Arrangement with Red 5 (RED AU, HOLD, Price Target A$0.50) on Friday, that will see RED acquire 100% of the shares in SLR. With the scheme now approved, the Second Court Hearing is set for 6 June, with the merger becoming effective on 7 June. SLR’s share price has risen +40% over the past three months, outperforming its Western Australian Gold Producer peer group and is now trading just 11% above our price target. Accordingly, we downgrade our rating from Buy to HOLD, with our A$1.70 price target unchanged.
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