Evolution Mining (ASX:EVN) has entered into an amended and restated Northparkes metal purchase and sale agreement with Triple Flag International, a subsidiary of Triple Flag Precious Metals (TSX:TFPM), amending the agreement from 2020 between Triple Flag and CMOC Group prior to Evolution acquiring its interest in Northparkes.
The amendment provides Evolution with an additional upfront capital contribution as they develop the E22 block cave, as well as opening up the potential to develop the E44 deposit via a reduced streaming rate.
The agreement terms outline that Evolution will receive an advance of $120 million, payable on 15 December 2026, through a refundable deposit.
The streaming rate for the E44 deposit will be reduced to 25% of payable gold production (down from 67.5% under the prior agreement) and 37.5% of payable silver production (down from 100%).
Triple Flag will also make payments to Evolution in the amount equivalent to 10% of prevailing spot price for any gold or silver delivered from E44 under the agreement.
Evolution commits to a binding minimum cumulative delivery of gold and silver totalling 45,000 ounces of gold and 446,000 ounces of silver between FY31 and FY 38, payable to Triple Flag.
Final Investment Decision on E44 needs to be reached by 31 December 2029. If it is not, Evolution can opt to repay the refundable deposit plus a compensation amount to Triple Flag. If the decision is made, then gold and silver production remains subject to terms of the agreement.
Managing Director of Evolution Lawrie Conway says that the agreement marks a “major milestone” as the company looks to unlock value from Northparkes.
“To achieve this, we needed to have full alignment with Triple Flag on how this value can be released. Triple Flag has demonstrated throughout our discussions, a commitment to jointly work on unlocking this potential,” Conway says.
Evolution Mining is a gold miner, operating six mines across New South Wales, Queensland, Western Australia, and Ontario, Canada.
Write to Amy Rotman at Mining.com.au
Images: Evolution Mining
