Gold producer Silver Lake Resources Limited (ASX:SLR) has inked a deal to merge Phillips River Mining’s NL (ASX:TTR) assets into Silver Lake.

The acquisition has a transaction value of $20 million with a JORC resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper.

After the merger is complete the assets will be collectively known as the Great Southern Gold Project.

The scheme of arrangement has unanimous support from both boards. 

Silver Lake Resources says acquiring Phillips River’s assets is in-line with its strategy to further grow is gold business and ramp up of Mount Monger.

Silver Lake is targeting to boost production from the Mount Monger operation to 200,000 ounces per annum by 2014.

In the 2011 financial year Silver Lake Resources posted a profit of $15.8 million.