Evolution Mining (ASX:EVN) has wrapped up a $525 placement to support the acquisition of an 80% interest in molybdenum giant CMOC Group’s Northparkes Copper-Gold Mine in New South Wales.
Under the acquisition — which is expected to be completed before the end of 2023 — Evolution will pay CMOC an upfront cash payment of US$400 million and a contingent cash consideration of up to US$75 million.
Evolution Mining Executive Chairman Jake Klein says CMOC’s 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”
The placement comprised 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, which has a market capitalisation of $6.88 billion, 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 wholly owns 5 mines in New South Wales, Queensland, Western Australia, and Ontario, Canada.
Images: Evolution Mining