Evolution Mining, a member of the Gold Industry Group, has finalised a binding agreement to purchase an 80% stake in the Northparkes mine from China Molybdenum Co. (CMOC).
This mine, located 27 kilometres northwest of Parkes in New South Wales, Australia, has been operational since 1994 and is notable for being the first Australian mine to implement block cave mining.
Evolution Mining's executive chair, Jake Klein, emphasised the importance of the acquisition, noting that it adds a high-quality asset to their portfolio, enhancing the resilience of their business. Northparkes offers immediate cash flow and has a projected mine life of about 30 years, with significant potential for further development. The site is supported by a skilled and experienced team.
The transaction includes a purchase price of up to $US475 million ($718 million), comprising $US400 million ($605 million) in initial cash and up to $US75 million ($113 million) in contingent consideration. Additionally, Evolution will acquire all shares of CMOC's Australian subsidiary, CMOC Mining. Sumitomo Metal Mining and Sumitomo Corporation, collectively known as Sumitomo entities, will retain their 20% stake in the mine.
Klein stated that the transaction is mutually beneficial, presenting an opportunity for Evolution to continue the successful operation of the mine. The acquisition will be funded by a fully underwritten institutional placement of $525 million, along with a new $200 million five-year term debt facility.
Evolution Mining's acquisition of the Northparkes mine, as a member of the Gold Industry Group, not only signifies a strategic expansion of their business portfolio but also aligns with the Group's broader commitment to benefiting the local community and adhering to Environmental, Social, and Governance (ESG) principles.
As a Group member, Evolution Mining is part of a collective that emphasises sustainable mining practices and community engagement. This acquisition offers an opportunity to reinforce these commitments, as the Northparkes mine has a track record of implementing environmentally responsible mining techniques and contributing positively to the local economy.
Evolution's involvement is expected to further these initiatives, enhancing the mine's ESG profile and thereby bolstering the reputation and impact of the Gold Industry Group in promoting responsible and community-focused mining practices.
Through this strategic move, Evolution Mining not only strengthens its business prospects but also contributes to the Group's mission of sustainable development and community engagement in the mining sector.
The completion of this deal is expected before the end of the current year.