Evolution Mining acquires Barrick’s Cowal gold mine in NSW

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Image credit: www.barrick.com

Barrick Gold Corporation has agreed to sell the Cowal mine in NSW to Evolution Mining for US$550 million, the senior gold miner announced on Sunday.

Image credit: www.barrick.com

Located in Central NSW, 32 kilometers north of West Wyalong and 350 kilometers west of Sydney, the Cowal mine is an open pit operation mined by a fleet of dump trucks, excavators and ancillary equipment.

The mine, which has 1.555,000 ounces of proven and probable gold reserves, produced 268,000 ounces of gold in 2014 and is expected to produce 250,000-280,000 ounces in 2015

Barrick’s Co-President Kelvin Dushnisky said the proceeds from the sale will be used to pay down debt, adding that the divestment of Cowal will also contribute to reduced general and administrative costs as the company completes the closure of its office in Perth.

“The sale of Cowal is consistent with the strategy we have outlined to create long-term value for our owners, making a significant contribution to our debt reduction target while further focusing the geographic footprint of our portfolio,” Mr Dushnisky said.

“We are pleased to have achieved a successful outcome following a competitive auction process in the first of several asset sales now underway. We would like to extend our gratitude to our Cowal employees, who have made a significant contribution to Barrick since the mine began production in 2006, and we wish them future success as part of the Evolution team.”

Evolution Mining is a mid-tier Australian gold producer which was created in late 2011 through a merger of Catalpa Resources and Conquest Mining. The company currently operates five gold and silver mines in Queensland and Western Australia.

According to Barrick, the transaction – subject to customary closing conditions – is expected to be completed in the third quarter of 2015.