Evolution officially acquires Northparkes majority

Evolution Mining has completed the acquisition of China Molybdenum Co’s…

Evolution Mining has completed the acquisition of China Molybdenum Co’s (CMOC) 80 per cent interest in the Northparkes copper-gold mine.

The Northparkes operation is located 27km north-west of Parkes in the central west region of New South Wales, Australia. It has been in operation since 1994 and made history as the first mine to use the block cave mining method in Australia.

After announcing the acquisition on December 5, Evolution has paid CMOC $US399 million ($603 million) for the substantial stake in Northparkes.

The payment was funded by the recently completed $525 million institutional placement and a new $200 million five-year term debt facility.

“We are delighted to have successfully completed the acquisition of an 80 per cent interest in, and operatorship of Northparkes,” Evolution Mining managing director and chief executive officer Lawrie Conway said.

“This is another important step in our strategy of building a portfolio of long-life, high-margin assets and delivers us two long life assets in central west NSW.

“We warmly welcome our new colleagues at Northparkes that will be joining Evolution today, and now turn our attention to delivering value for all stakeholders over the long term from the high-quality Northparkes operation.”

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

CMOC decided to divest its 80 per cent stake in the project to pursue other strategic initiatives more aligned to its objectives.

Evolution has also announced a non-underwritten share purchase plan that is targeting up to $60 million. It is expected to close on January 16 2024 at 5pm.

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