Evolution Mining Limited has entered a binding agreement with Newcrest Operations Limited, a fully owned subsidiary of Newcrest Mining Limited, to acquire the Marsden copper-gold project.
According to this deal, Australian company Evolution will make an upfront payment of A$3m (US$2.31m) after the completion of this acquisition.
It will also make a further A$7m (US$ 5.38m) payment based on a decision to mine.
This contingent payment is payable only if the decision to mine is made within ten years from the date of acquisition.
The agreement is subject to governmental approval and other customary conditions.
Marsden is a copper-gold porphyry deposit located in the south-east of Evolution’s Cowal gold mine in New South Wales, Australia.
It is the nearest known sizeable mineral deposit to the Evolution’s Cowal gold mine. Therefore, it holds immense strategic value to all Evolution’s exploration activities in this region.
The mine hosts an estimated mineral resource of around 180 million tonnes grading 0.20g/t Au and 0.38% Cu, comprising 1.1 million ounces of gold and 670,000t of copper.
Evolution’s internal technical review has revealed that the potential to develop the Marsden deposit will get enhanced by utilising the Cowal milling circuit and its associated infrastructure.
The current Cowal treatment facility is unable to treat Marsden material concurrently with Cowal ore and hence any option involving processing at Cowal will be at the end of the Cowal mine life.
Evolution Mining executive chairman Jake Klein said: “The Marsden project provides long-term optionality to our nearby Cowal operation and has the potential to further extend the life of what is already a long-life operation.”