Evolution Mining (ASX:EVN)
has completed the sale of the Mt Carlton gold mine to Navarre Minerals (ASX:NML)
Evolution has received the upfront consideration of $40 million, comprising $26.8 million in cash and 176,565,396 Navarre shares, which equates to a 12.9 per cent shareholding in Navarre.
The sale agreement also includes additional payments of up to $25 million on cumulative gold production milestones from Crush Creek with $5 million payable upon achievement of 50,000 ounces, $5 million payable upon achievement of 100,000 ounces and $15 million payable upon achievement of 175,000 ounces.
The agreement also includes up to $25 million in the form of a 5 per cent gold price linked royalty where the average spot gold price is greater than $2,250/oz in a given quarter. The royalty is payable on production from both Mt Carlton and Crush Creek from July 1, 2023 for up to 15 years.
Evolution said it will continue to provide transitional support services to Navarre for the following three months to ensure a safe and smooth transition of ownership.
Shares in Evolution Mining (ASX:EVN)
are trading 4.6 per cent lower at $3.82.