PERTH (miningweekly.com) – Shareholders of gold miner Evolution Mining on Thursday overwhelmingly voted in favour of the acquisition of private gold miner La Mancha’s Australian operations.
In April, Evolution entered into a binding agreement that would see La Mancha becoming Evolution’s largest shareholder and long-term strategic partner, while allowing Evolution to increase its production to between 530 000 oz/y and 600 000 oz/y.
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.
Upon completion of the transaction, La Mancha would hold a 31% interest in Evolution.
La Mancha’s Australian operations include the high-grade Frog’s Leg underground mine and the adjacent White Foil openpit mine, in Western Australia, as well as the recently completed 1.5-million-tonne-a-year Mungari carbon-in-leach processing plant.
The private gold miner’s Australian operations produce 130 000 oz/y to 160 000 oz/y of gold, at an all-in sustaining cost of between A$950/oz and A$1 000/oz.
The transaction remained subject to Foreign Investment Review Board approval.