Mining News
Evolution to divest its Mt Carlton gold mine for A$90 million
(Kitco News) - Evolution Mining announced yesterday that it has entered into a binding agreement with Navarre Minerals to sell the Mt Carlton gold mine (includes Crush Creek) in Queensland for a total consideration of up to A$90 million (~$66 million).
Evolution said that a key objective of its corporate strategy is to continuously seek to upgrade the quality of its portfolio through either acquisition or divestment and the sale of Mt Carlton is consistent with this strategy.
The company added that consistent with other divestments, Evolution will retain upside exposure to Mt Carlton through the shareholding in Navarre of up to 19.9% and the contingent considerations.
Commenting on the transaction, Executive Chairman Jake Klein said: "Mt Carlton was Evolution's first development project and has generated excellent returns for shareholders since it was commissioned in 2013. With the company focused on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who
can focus on extending the operation's mine life."
Evolution operates four wholly-owned mines, post completion of this divestment – Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon in Queensland, and Red Lake in Ontario, Canada. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.
