- Evolution Mining (EVN) has agreed to snap up Canadian-based mining stock Battle North Gold for C$343 million (roughly A$354 million)
- At that price, EVN will pay C$2.65 (around A$2.74) for each Battle North share on issue — a 46 per cent premium to the its last closing price
- The takeover is subject to shareholder approval, with 66.5 per cent of Battle North shareholders needing to sign off on the deal for it to go ahead
- EVN is interested in buying Battle North’s Bateman Gold Project, which is located near its own assets in the Red Lake Gold District of Ontario
- Shares in Evolution Mining are trading at $4.01 per share, up 1.52 per cent
Evolution Mining (EVN) has agreed to snap up Canadian-based mining stock Battle North Gold for C$343 million (roughly A$354 million).
The ASX listed and TSX listed businesses have entered into a definitive agreement, which will see Evolution buy all of Battle North’s shares on issue.
EVN has agreed to pay C$2.65 (around A$2.74) for each Battle North share on issue, representing a 46 per cent premium to the the company’s last closing price.
Evolution is interested in buying Battle North primarily for its Bateman Gold Project, which is located near Evolution’s own assets in the Red Lake Gold District of Ontario, Canada.
“Both Evolution and Battle North started the negotiation with a clear alignment that a consolidation of the properties would create value that would not be available if they were developed and operated separately,” Evolution Executive Chairman Jake Klein said.
“This acquisition provides Evolution with an opportunity to expand our footprint in the region and create value by leveraging the infrastructure of the two operations,” he added.
“The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300,000 ounces of gold per annum from Red Lake,” Jake said.
The takeover by Evolution is still subject to shareholder approval, with 66.5 per cent of Battle North shareholders needing to sign off on the deal for it to go ahead.
A Battle North shareholders are expected to meet in May, with the wider deal likely to be completed by the end of the second quarter.
Shares in Evolution Mining are trading at $4.01 per share, up 1.52 per cent, at 10:36 am AEDT.