- Evolution Mining (EVN) has completed its acquisition of Battle North Gold with all conditions satisfied
- The company has agreed to purchase all Battle North’s shares on issue at C$2.65 (around A$2.74) each for a total consideration of C$343 million (roughly A$354 million)
- The transaction and associated costs will be funded through a five-year term loan of $440 million, with an initial repayment of $15 million due in October
- Battle North’s Bateman Gold project in Ontario, Canada, is advantageous to Evolution as it borders the company’s Red Lake operations
- Evolution’s executive chairman, Jake Kelin, said the deal will create value by leveraging the infrastructure of the two operations
- Details on Evolution’s long-term outlook for Red Lake are expected in the September 2021 quarter
- Shares in Evolution are up 0.4 per cent, trading at $5.21 each
Evolution Mining (EVN) has completed its acquisition of Battle North Gold with all conditions satisfied.
The plan to acquire the Canadian-based mining stock was announced in March and approved by shareholders last week, with Evolution agreeing to pay C$2.65 (around A$2.74) for each Battle North share on issue, for a total consideration of C$343 million (roughly A$354 million).
Evolution has picked up a five-year term loan of $440 million from a syndicate of eight banks to fund the transaction and associated costs.
Repayments are scheduled at $50 million per year from financial year 22 through to financial year 25 with the balance to be repaid the following financial year. An initial repayment of $15 million is due in October this year.
Battle North’s Bateman Gold project in Ontario, Canada, is advantageous to Evolution as it borders the company’s Red Lake operations.
Evolution’s executive chairman, Jake Kelin said the deal gives the company an “opportunity to expand its footprint in the Canada region and create value by leveraging the infrastructure of the two operations”.
Bateman covers 28,000 hectares with a measured and indicated mineral resource estimate, excluding mineral reserves, of 1.71 million tonnes grading 7.09 grams per tonne for 390 thousand ounces of gold.
The project also has an inferred mineral resource of 1.56 million tonnes grading 6.83 grams per tonne for 343 thousand ounces gold, and a mine life of eight years.
With the acquisition complete, Evolution plans to provide details on its long-term outlook for Red Lake in the September 2021 quarter, once the Battle North assets are integrated into an updated life of mine plan.
Shares in Evolution are up 0.4 per cent, trading at $5.21 each at 1:25pm AEST.