PERTH (miningweekly.com) – ASX-listed Aeris Resources has completed the acquisition of the Cracow gold mine, in Queensland, from gold miner Evolution Mining.
The two companies in June struck a A$125-million agreement for Aeris to acquire the gold mine, with the consideration consisting of a A$60-million cash payment on the completion of the transaction, a further A$15-million cash payment at the end of June next year, and up to A$50-million in contingent consideration payable in the form of a 10% net value royalty, based on gross revenues less C1 direct costs in relation to any gold produced at Cracow in a five-year period between July 2022 and June 2027.
Aeris executive chairperson Andre Labuschagne on Wednesday said that the company was pleased to have closed the transaction.
“The Cracow gold operations are a great fit for Aeris and we welcome the on-site team into the Aeris family. We are very excited at both the production and exploration potential at Cracow and have committed some A$13-million to exploration over the next two years.”
For the 2021 financial year, Cracow is expected to produce between 70 000 oz and 75 000 oz of gold at a C1 cash cost of A$980/oz.