PERTH (miningweekly.com) – The shareholders of TSX-listed Battle North Gold Corporation have voted in favour of a takeover offer from ASX-listed gold miner Evolution Mining.
Evolution in March launched a C$343-million deal to acquire Battle North Gold Corporation, to gain ownership of the Bateman gold project in the Red Lake gold district, in Ontario.
Under the terms of the proposed transaction, Evolution has agreed to acquire all of the issued and outstanding shares of Battle North at a price of C$2.65 a share in cash.
The offer price represents a 46% premium over Battle North’s closing price on March 12, and a 54% premium to the company’s 20-day volume weighted average share price.
Evolution told shareholders on Wednesday that some 65% of the issued capital of Battle North was voted, with 99.8% voting in favour of the transaction.
“It’s pleasing to see the overwhelmingly positive support for the transaction from Battle North shareholders. This acquisition provides Evolution with an opportunity to expand our footprint in the Red Lake region and create value by leveraging the infrastructure of the two operations,” said Evolution executive chairperson Jake Klein.
“The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300 000 oz/y of gold from Red Lake.”
The Bateman project covers some 28 000 ha and includes a new 650 000 t/y mill facility. The project is currently permitted for 450 000 t/y, and is expandable to 900 000 t/y with minimal capital investment.
The project is currently estimated to host a reserve of some 3.5-million tonnes, grading 5.54 g/t gold for 635 000 oz of contained gold, and a resource estimate of 1.71-million tonnes, grading 7.09 g/t gold for 390 000 oz of contained gold.
A feasibility study previously estimated that the project would produce some 74 000 oz/y over a mine life of eight years, at an all-in sustaining cost of $865/oz.
The transaction between Evolution and Battle North remains subject to Supreme Court approval, with a hearing scheduled for May 17. If approved by the court, the transaction will be settled on May 19.