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Evolution grabs some Northern Star gold assets in Australia for $295M

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(Kitco News) - Australian gold miner Evolution Mining (ASX:EVN) announced today that it has entered into an agreement with Northern Star Resources to acquire assets, located in the Eastern Goldfields of Western Australia.

According to a press-release, the acquisition assets comprise of 100% interest in the Kundana Operations, 51% interest in the East Kundana Joint Venture, 100% interest in certain tenements comprising the Carbine project, and 75% interest in the West Kundana Joint Venture.

Evolution said it has agreed to pay Northern Star A$400 million (~$295 million) in cash upon closing of the transaction.

The company added that the main acquisition assets are located within 8km of Evolution’s Mungari Operations and represent an important strategic opportunity for Evolution to consolidate the region, optimise the value of its existing infrastructure and capture significant operational synergies.

As a result of the transaction, Evolution said its three-year gold production outlook has increased to 700 – 760koz in FY22; 815 – 875koz in FY23; and 940 – 1,010koz in FY24. This represents an increase in production of 30koz in FY22; 65koz in FY23; and 60koz in FY24.

Evolution Mining is a leading gold miner. Evolution operates five wholly-owned mines – Cowal in New South Wales, Mt Rawdon and Mt Carlton in Queensland, Mungari in Western Australia, and Red Lake in Ontario, Canada. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.

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