Evolution Mining has agreed to sell the Mt Carlton gold mine in Queensland (including Crush Creek) to Navarre Minerals Limited for a total consideration of up to A$90 million, comprising a mix of equity and cash.
Evolution Mining’s Executive Chairman Jake Klein said the company had consistently stated that a key objective of its corporate strategy was to continuously seek to upgrade the quality of its portfolio through either acquisition or divestment, adding that and the sale of Mt Carlton was consistent with this strategy.
“Mt Carlton was Evolution’s first development project and has generated excellent returns for shareholders since it was commissioned in 2013,” Mr Klein noted.
“With the Company focused on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who can focus on extending the operation’s mine life.”
He said that much like with other divestments, the company would retain upside exposure to Mt Carlton through the shareholding in Navarre of up to 19.9%1 and the contingent considerations included in the contract.
“The exposure we have retained will enable Evolution shareholders to benefit from the future success of the operation,” Mr Klein said.
“Evolution would like to thank our employees, contractors, suppliers, the traditional custodians of the land the Birriah People, and the local community for their contribution Mt Carlton’s success.
“We are confident that Navarre will be a great partner for those stakeholders in the future.”
