KALGOORLIE (miningweekly.com) – Australia’s second-largest gold miner Evolution Mining will continue to evaluate potential acquisitions in Australia, with executive chairperson Jake Klein saying that the company could also potentially look at opportunities outside Australia.
The gold miner recently wrapped up a $550-million buy of the Cowal gold mine, in New South Wales, from US-based gold miner Barrick and was awaiting Foreign Investment Review Board approval for a deal with private gold miner La Mancha.
In exchange for its assets, La Mancha would be issued with more than 322-million new shares in Evolution and the company had also agreed to subscribe for up to A$112-million of additional shares in Evolution, priced at 90c each.
The acquisition of the project would push Evolution’s production to between 760 000 oz and 860 000 oz of gold and would endow the company with gold reserves of some 4.6-million ounces and resources of 11-million ounces.
Responding to questions on the second day of the Diggers & Dealers conference, Klein said any further potential acquisitions by Evolution would be viewed through the lens of whether it improved the quality of the company.
“I have said this several times and it remains that Evolution is open for business. We like mining in Australia, but we won’t be adverse to mining in other districts, within our time zones.”
However, Klein qualified that investments outside of Australia were unlikely to be "significant".
Regarding Evolution’s intentions towards fellow-listed Phoenix Gold, in which the company holds a 19% interest, Klein was reluctant to comment.
“We like the ground and by buying an extra 10% we indicated that we want to participate in that ground going forward,” Klein said on the sidelines of the conference.
Phoenix Gold was currently the target of a takeover offer from China’s Zijin Mining, which was offering shareholders 10c a share for their holdings in the company.
Evolution increased its shareholding in Phoenix after Zijin announced its intention to launch a takeover offer for Phoenix in June, leading to speculation that Evolution would prevent the deal.