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Evolution wins race to acquire Northparkes

Northparkes

Evolution Mining has bought a majority stake in the Northparkes copper-gold mine in New South Wales.

The deal saw China Molybdenum Company (CMOC) sell its 80 per cent interest in Northparkes to Evolution for up to $US475 million ($724.75 million), with $US400 million to be paid upfront.

This coincides with an offtake agreement that will see CMOC gain access to copper concentrates through Evolution’s 80 per cent attributable interest in Northparkes.

Sumitomo entities, Sumitomo Metal Mining and Sumitomo Corporation, will retain their 20 per cent stake in the mine.

“The acquisition of Northparkes represents a unique opportunity to add another quality asset to our portfolio, strengthening our positioning as a business that prospers through the cycle,” Evolution Mining executive chair Jake Klein said.

“Northparkes is a day-one cashflow producing asset with (an approximate) 30-year mine life, considerable upside and a well-established team that has a great track record and technical experience at the operation.”

Evolution has launched a $525 million fully underwritten institutional placement and a $200 million five-year debt facility to fund the transaction. The placement is priced at $3.80 per share, representing an 8.2 per cent discount to Evolution’s closing share price of $4.14 at close on Monday December 4.

Evolution won an acquisition race that also drew interest from Metals Acquisition Limited (MAC), Sandfire Resources and Aeris Resources, with MAC one of the underbidders for the deal, as reported by The Australian Financial Review.

MAC demonstrated its interest in Northparkes earlier this year, soon after the company completed its acquisition of the CSA copper mine in NSW.

Northparkes will complement Evolution’s Cowal operation in NSW, which produced 276,314 ounces of gold in the 2022–23 financial year (FY23).

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