Evolution is buying the Cowal mine from Barrick Gold for $550-million.
PERTH (miningweekly.com) – Gold miner Evolution Mining on Friday completed the institutional component of its accelerated renounceable entitlement offer, raising A$172-million to assist in funding the acquisition of the Cowal mine, in New South Wales.
The institutional entitlement offer formed part of the larger A$248-million equity raising announced earlier this month, to assist Evolution in acquiring the Cowal mine from gold miner Barrick, at a price of $550-million.
Evolution told shareholders on Friday that the institutional entitlement offer had received strong support from existing shareholders, with the bookbuild priced at A$1.05 per entitlement, resulting in a premium of 15c an entitlement over the entitlement price of 90c each.
“This is a fantastic outcome. We are delighted with the level of participation from our existing institutional shareholders,” said Evolution executive chairperson Jake Klein.
“It is also very encouraging to see strong demand in the shortfall bookbuild from both existing and new institutional shareholders. The fact that this bookbuild priced at 15c above the floor price demonstrates strong support for the Cowal acquisition and I think is a positive reflection of the reputation that Evolution has established over the last three-and-a-half years.”
The Cowal mine was estimated to produce between 230 000 oz/y and 260 000 oz/y, at an all-in sustaining cost of between A$850/oz and A$900/oz.
Following the completion of the transaction, Evolution would produce between 630 000 oz/y and 700 000 oz/y, which would increase to between 760 000 oz/y and 860 000 oz/y, post completion of the proposed La Mancha Australia acquisition.
Meanwhile, eligible retail shareholders would be invited to participate in the retail entitlement offer at the same offer price. The retail entitlement offer would open on June 3, and close on June 15.