PERTH (miningweekly.com) – Gold miner Evolution Mining has completed the divestment of its Edna May operation, in Western Australia, to fellow gold producer Ramelius Resources.
The company on Tuesday said that it had received the A$40-million up-front cash payment from Ramelius.
The sale agreement also included up to A$50-million of contingent payments, comprising royalties and cash, or Ramelius shares.
A royalty payment would be due once Ramelius produced 200 000 oz from the current Edna May tenements, with a milestone payment of A$20-million in either cash or shares payable when Ramelius made a decision to start a cut-back to the current Edna May openpit.
Evolution previously revised its 2018 full-year gold production guidance from between 820 000 oz and 880 000 oz, to between 750 000 oz and 805 000 oz, while the all-in sustaining costs guidance had been reduced by A$30/oz, to between A$820/oz and A$870/oz.
“We are excited to assume ownership and management of the Edna May gold mining operation and becoming a 200 000 oz/y gold producer,” said Ramelius MD Mark Zeptner on Tuesday.
“We are particularly encouraged by the potential for Edna May to increase both its ore reserves and annual production via further extensions which represent huge optionality for Ramelius in the future.”