Evolution Mining Limited
(ASX:EVN) says it will buy the Cowal Gold Mine in NSW from Barrick for just over $700 million.
The long-life mine produces around 240,000 ounces of gold annually and is one of the best gold assets in Australia.
Evolution say they will raise $248 million in a pro rata entitlement offer with the remainder of the purchase price to funded by refinanced corporate credit facilities.
On completion of this deal and the La Mancha Australia acquisition, Evolution expected to be producing upwards of 850,000 ounces of gold per annum whilst reducing costs from $1,032 per ounce to between $950 - $1,020 per ounce.
Evolution Mining reported a net profit of $43 million for the first half of the 2015 financial year.
