Australian gold miner Evolution Mining has agreed to acquire Canada-based Battle North Gold for roughly $275m (C$343m).
Under the terms of the agreement, Evolution Mining will acquire all of the issued and outstanding shares of Battle North for C$2.65 ($2.12) per common share in cash.
Battle North Gold is engaged in the development of the Bateman gold project located near Red Lake, Ontario.
It also controls exploration ground in Ontario as well as owns a gold exploration land package on the Long Canyon gold trend near the Nevada-Utah border in the US.
Spread over more than 28,000ha area, the Bateman gold project includes a new 1,800tpd mill facility and is currently permitted for 1,250 tonnes per day (tpd). It is expandable to 2,500tpd with minimal capital.
Evolution executive chairman Jake Klein said: “This acquisition provides Evolution with an opportunity to expand our footprint in the region and create value by leveraging the infrastructure of the two operations.
“The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300,000 ounces of gold per annum from Red Lake.”
Subject to necessary conditions, the transaction is expected to complete in the second calendar quarter of 2021.
Battle North president, CEO, and director George Ogilvie said: “The all-cash offer is at a significant premium to market and reflects the extraordinary efforts of the Battle North team to create value at the Bateman Gold Project and ultimately deliver an outstanding outcome for Battle North’s shareholders.
“We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution and this Transaction reduces development and execution risk.”
As per the feasibility study, the Bateman gold project is estimated to host a mineral reserve of some 3.5 million tonnes, grading 5.54g/t gold for 635,000 ounces of contained gold.
The project is expected to have annual production of 74,000 ounces per annum over a mine life of eight years.