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Evolution Mining (ASX:EVN) and Northern Star Resources (ASX:NST) completes acquisition deal

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ASX:NST      MCAP $16.47B
19 August 2021 03:00 (AEST)
Evolution Mining (ASX:EVN) - Executive Chairman, Jake Klein

Source: Evolution Mining

Evolution Mining (EVN) has completed an agreement with ASX-lister Northern Star Resources (NST) to acquire assets in Western Australia’s Eastern Goldfields.

The company is a growth-focussed gold miner operating five wholly-owned mines in Australia, including Mungari in WA.

The soon-to-be-acquired assets comprise a 100 per cent interest in the Kundana operations; a 51 per cent interest in the East Kundana Joint Venture (JV); a 100 per cent stake in certain tenements of the Cabrine Project; and a 75 per cent interest in the West Kunanda JV.

Through the deal, EVN has paid NST $400 million in cash, which was funded through a fully underwritten institutional placement. An additional non-underwritten share purchase plan is set to close on August 20.

Northern Star claimed the sale aligned with its strategy to actively manage its asset portfolio to maximise financial returns.

Evolution Mining Executive Chairman Jake Klein commented on the purchase.

“The consideration of these assets elevates Mungari into the fourth cornerstone asset in Evolution’s portfolio through increased production, mine life and minerals resources,” he said.

“This transaction continues Evolution’s track record of identifying and securing opportunities that are both accretive and improve the quality of the portfolio.”

Mr Klein said he looked forward to integrating the operation and welcomed colleagues across the company’s newly acquired sites.

Evolution Mining shares closed 1.28 per cent in the green at $3.95, while Northern Star closed 0.21 per cent in the green at $9.57.

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