Evolution Mining (ASX:EVN) is to divest Cracow gold mine for $125 million

Company News

by Rachael Jones

Evolution Mining (ASX:EVN) has entered into a binding agreement with Aeris Resources (ASX:AIS) to sell the Cracow gold mine in Queensland for a total consideration of up to $125 million.

This consists of $60 million cash payable upon completion, $15 million cash payable on 30 June 2022 and up to $50 million contingent consideration payable in the form of a 10 per cent net value royalty, based on gross revenues less C1 direct cash costs in relation to any gold produced at Cracow in the five-year period from 1 July 2022 to 30 June 2027.

Evolution believes that Cracow has more value in the hands of Aeris than in Evolution’s portfolio.

Shares in Evolution Mining (ASX:EVN) are trading 2.6 per cent lower at $5.71.