Evolution completes A$400m raise

23rd July 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Evolution completes A$400m raise

Photo by: Bloomberg

PERTH (miningweekly.com) – Gold miner Evolution Mining has completed a A$400-million institutional placement to fund the acquisition of fellow listed Northern Star’s Kundana gold assets, in Western Australia.

The two companies this week unveiled the agreement which would see Evolution acquire a 51% interest in the East Kundana joint venture (EKJV), full interest in certain tenements making up the Carbine project, and a 75% interest in the West Kundana joint venture (WKJV).

In the 2021 financial year, the Kundana assets produced some 12 943 oz of gold, and hosting a combined resource estimate of 2.4-million ounces, including reserves of 579 000 oz.

Evolution undertook an institutional placement to fund the acquisition of the Kundana operations, with the miner saying on Friday that it would issue 104-million new fully paid ordinary shares to institutional investors, at a price of A$3.85 a share.

“We are delighted with the level of support from shareholders for the institutional placement, reflecting their endorsement of this pivotal transaction that will transform Munari to establish the operation as the fourth cornerstone asset in the Evolution portfolio,” said Evolution executive chairperson Jake Klein.

Settlement of the institutional placement will occur on July 27, and the new shares will start trading on the ASX on July 28.

Meanwhile, Evolution on Friday said that it would also give existing shareholders a chance to participate in the capital raising through a share purchase plan (SPP), which is targeted to raise up to A$50-million.

Existing shareholders would be allowed to subscribe for up to A$30 000 worth of new shares under the SPP. The SPP will also be priced at A$3.85 a share, with the funds to be applied towards general corporate purposes.

The SPP will open on July 29 and will close on August 20.