https://www.miningweekly.com

Evolution sells Pajingo to Chinese for A$52m

16th August 2016

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Gold miner Evolution will sell the Pajingo gold mine and surrounding exploration tenements in North Queensland to an emerging Chinese miner for up to A$52-million, the ASX-listed company announced on Tuesday.

Minjar Gold will pay A$42-million in cash upfront for the gold mine, which started operating 30 years ago, as well as a 1% net smelter return royalty of up to A$10-million for gold production above 130 000 oz.

“Pajingo has made a very important contribution to our business over the last six years. Evolution has grown significantly in the past 18 months and it now makes strategic sense for the asset to be operated by an emerging gold producer that can provide the right level of focus on further extending the mine’s operating life,” commented Evolution executive chairperson Jake Klein.

The Australian miner last week announced that it would sell the mine, which is located about 50 km from Charters Towers and which produced 68 630 oz in the 2016 financial year. As a result of the sale, Evolution will book a loss on the sale of A$77.3-million based on the carrying value of the asset.

The sale is unconditional and is expected to close on September 1.

As a result of the sale, Evolution has lowered its 2017 financial year-end gold production guidance by about 60 000 oz to between 745 000 oz and 800 000 oz at an all-in sustaining cost (AISC) of between A$970/oz and A$1 030/oz. Group gold production for 2016 totalled 803 476 oz at an AISC of A$1 014/oz.

Edited by Creamer Media Reporter

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.106 0.138s - 88pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: