CQ gold mine sells for $125 million

Aeris Resources has purchased the Cracow gold mine from Evolution Mining.

The Cracow gold mine, which has been purchased by Aeris Resources from Evolution Mining for $125 million.

“THERE’S gold in them hills” and Aeris Resources is determined to “aggressively explore” for it after purchasing the Cracow gold mine from Evolution Mining for $125 million.

The mine near the tiny village of Cracow, about 200km southwest of Gladstone, produced more than 80,000 ounces of gold, worth $36.1 million, in the 2018-19 financial year.

Aeris executive chairman Andre Labuschagne described the purchase of the Cracow gold mine as a “truly transformational acquisition”.

“(The) acquisition includes a highly prospective tenement package covering 903 sq km, which Aeris intends to aggressively explore,” he said.

“(It promises) more than $100 million of net mine cashflow over the first two years of Aeris’ ownership at the current gold price.

“Cracow has a strong track record of reserve and resource replacement and Aeris plans to aggressively invest in brownfield and greenfield exploration with the aim of growing the resource base to extend mine life.”

Mr Labuschagne said the mine’s current 220 employees are welcome to stay on.

Most of the workers are fly-in, fly-out employees who utilise the airstrip at Theodore, which Evolution mining spent $3 million repairing last year.

Cracow mayor Neville Ferrier said the population of the mining camp far exceeds the town’s population of 89.

Before being granted an exploration permit by the Department of Natural Resources, Mines and Energy, Aeris had to negotiate with private landholders in the mine’s area to comply with the Land Access Code.

Aeris agreed to pay Evolution $60 million upon closing of the transaction, a deferred payment of $15 million on June 30, 2022, plus a 10 per cent net value royalty from July 1, 2022, to June 30, 2027, capped at $50 million.

The company will officially inherit operation on July 1.

“Aeris inherits a well-run, proven operation which has been a consistent performer for Evolution,” Mr Labuschagne said.

“Importantly for us, there is a strong operating team in place that has a culture of continuous improvement.”

The region experienced its first gold boom in the 1800s, but it wasn’t until the 1930s that the first mine was developed.

The Cracow gold mine was developed in 2003 by a group of companies, with Evolution Mining taking a 100 per cent stake in 2011.