Monday April 20, 2015: Evolution Mining (EVN) has formally announced the industry's worst-kept secret - that it has agreed to acquire the Australian assets of fellow gold miner La Mancha.
La Mancha will emerge with 31 per cent of Evolution in return for its assets, which include the Frog's Leg and White Foil mines near Kalgoorlie in WA.
Evolution said the deal would grow its annual production to 530,000-600,000 ounces at an all-in sustaining cost of A$960-A$1030/oz.
The deal will give Evolution greater scale, though critics are likely to point out that with La Mancha as a cornerstone shareholder, the share price will not contain any takeover premium.
Parroting the messages of Northern Star Resources, Evolution said the purchase would deliver it "the scale and quality sought by global investors".
La Mancha will emerge with 31 per cent of Evolution in return for its assets, which include the Frog's Leg and White Foil mines near Kalgoorlie in WA.
Evolution said the deal would grow its annual production to 530,000-600,000 ounces at an all-in sustaining cost of A$960-A$1030/oz.
The deal will give Evolution greater scale, though critics are likely to point out that with La Mancha as a cornerstone shareholder, the share price will not contain any takeover premium.
Parroting the messages of Northern Star Resources, Evolution said the purchase would deliver it "the scale and quality sought by global investors".