Evolution Mining (ASX:EVN) has completed a $525 million institutional placement to partly fund the acquisition of an 80% interest in the Northparkes Copper-Gold Mine in New South Wales.
The $6.88 billion market capitalisation company is acquiring the 80% interest of Northparkes from molybdenum giant CMOC Group for up to US$475 million, comprising an upfront cash payment of US$400 million and a contingent cash consideration of up to US$75 million.
The transaction is expected to be completed before the end of December 2023.
Evolution Mining Executive Chairman Jake Klein says the Northparkes mine is a reliable, well-established, long-life copper and gold asset that fits well into the company’s portfolio of assets.
“As a cash flow generating asset from day one, the acquisition of Northparkes is aligned to our deleveraging strategy.”
“As a cash flow generating asset from day one, the acquisition of Northparkes is aligned to our deleveraging strategy”
Evolution’s placement comprises the issue of 138.2 million new fully paid ordinary shares to institutional investors for $3.80 per share.
The settlement of the placement is anticipated to occur on 8 December 2023, with the new shares to be issued and begin trading on 11 December 2023.
Evolution is also offering all eligible shareholders the chance to participate in a non-underwritten share purchase plan (SPP) on 13 December 2023 to raise up to $60 million to support integration costs related to the acquisition transaction and general working capital.
The SPP share price will either be the same as the placement or a 2.5% discount to Evolution’s 5-day volume weighted average price (VWAP) up to and including the closing date of the SPP (16 January 2024), whichever is cheaper.
Evolution notes the application for new shares under the SPP will be capped at $30,000 per eligible shareholder, across all their holdings.
Evolution Mining is a gold miner that wholly owns 5 mines in New South Wales, Queensland, Western Australia, and Ontario, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Evolution Mining