Australian gold miner Evolution Mining has announced the acquisition of La Mancha Australia from La Mancha Group International BV, a Luxembourg-based gold producer owned by Egyptian billionaire Naguib Sawiris.
The deal, which is thought to be worth around $300 million, will see Evolution gain control over La Mancha’s high-grade Frog’s Leg underground gold mine, the adjacent White Foil open-pit gold mine and the recently completed 1.5Mtpa Mungari CIL processing plant – all located in close proximity to Kalgoorlie in Western Australia.
La Mancha, which earlier this year sold its minority 44% interest in the Ariab Mining Company for US$100m to the Sudanese Government, said the formation of a strategic partnership with Evolution creates a leading Australian gold producer with a combined annual production of 530,000 – 600,000 ounces from six operations at a globally competitive AISC of $A950 – 1,000 per ounce.
“To solidify its footprint in Australia, La Mancha has formed a long-term strategic partnership with Evolution Mining and has entered into a binding agreement to contribute 100% of La Mancha’s Australian operation into Evolution, in return for a 31% interest in the enlarged group, from six operations at a globally competitive AISC of $A950 – 1,000 per ounce,” the company said in a statement in April.
“La Mancha and Evolution have a shared vision of building a major regional gold miner with the scale, operating profile, and cash flow generation to appeal to global investors. The two companies believe that the combined group will be very well positioned to take advantage of future growth opportunities, especially in the current market environment.”