Evolution snaps up stake in Glencore’s Ernest Henry mine
Evolution Mining has taken an $880 million stake Glencore’s Ernest Henry gold and copper mine in Queensland.
Gold miner Evolution Mining has taken an $880 million stake Glencore’s Ernest Henry gold and copper mine in Queensland.
To fund the deal Evolution has launched a $401m accelerated entitlement offer.
Credit Suisse and RBC are the joint lead managers to the equity raise which has been priced at $2.05, a 13 per cent discount to the theoretical ex-rights price or Terp.
Under the terms of the deal Glemcore remains the operator of the Ernest Henry mine while Evolution has bought a majority stake in the gold output and close to a third of the copper production.
Evolution is issuing a total of 196 million new securities under the two-for-15 entitlement offer, with books due to close on the deal later today.
The deal was brokered by RBC Capital on behalf of Evolution.
Shares in the stock have been suspended.
A shortfall book build to mop up any securities not taken up by institutional fund managers will be launched on Friday and investors will be asked to bid up from the offer price in 1c increments.
Glencore’s decision to strike a joint venture deal on the Ernest Henry mine comes as the global miner and commodities trader prepares to hand down its latest results and update shareholders on its multi-billion debt reduction strategy.
The deal also follows the unveiling last week of Evolution’s annual results, which showed a headline loss of $24m due to a $77m impairment charge against its recently sold Pajingo gold mine.
The stock will shortly progress in to the ASX 100 after a series of transformative deals over the past year.
This latest investment delivers a greater exposure to copper, a commodity that is widely expected to rally over the next few years despite a recent reversal in valuations.
The underground Ernest Henry mine in north west Queensland ranks as one of the deepest copper and gold mines in Australia with the ore shipped to Mt Isa for smelting.
Its output significantly expand Evolution’s diversified portfolio of assets which are made up of five mature gold mines as well as a recently developed gold-copper project.
Gold miner Evolution Mining has snapped up Glencore’s Ernest Henry gold and copper mine in Queensland for $900 million.
Credit Suisse and RBC are the joint lead managers to the equity raise which has been priced at $2.05, a 13 per cent discount to the theoretical ex-rights price or Terp.
Evolution (EVN) is issuing a total of 196 million new securities under the two-for-15 entitlement offer, with books due to close on the deal later today.
The deal was brokered by RBC Capital on behalf of Evolution.
Shares in the stock have been suspended.
A shortfall book build to mop up any securities not taken up by institutional fund managers will be launched on Friday and investors will be asked to bid up from the offer price in 1c increments.
Glencore’s decision to cast off the Ernest Henry mine comes as the global miner and commodities trader prepares to hand down its latest results and update shareholders on its multi-billion debt reduction strategy.
The deal also follows the unveiling last week of Evolution’s annual results, which showed a headline loss of $24m due to a $77m impairment charge against its recently sold Pajingo gold mine.
The stock will shortly progress into the ASX 100 after a series of transformative deals over the past year.
This latest acquisition delivers a greater exposure to copper, a commodity that is widely expected to rally over the next few years despite a recent reversal in valuations.
The underground Ernest Henry mine in north west Queensland ranks as one of the deepest copper and gold mines in Australia with the ore shipped to Mt Isa for smelting.
Its operations will be significantly expand Evolution’s diversified portfolio of assets, which are made up of five mature gold mines as well as a recently developed gold-copper project.