In a press statement, Glencore indicated that it will receive A$1 billion that entails A$800 million at the close of the translation and while the additional A$200 million will be paid in 12 months after the transaction closes in January 2022. The deal follows five years of partnership between Evolution and Glencore. Evolution was already involved in Ernest Henry after buying rights to 100% of the gold produced at the mine and 30% of the copper in 2016.
Evolution to fully own mine
Following completion of the transactions, Evolution will fully own and operate the copper-gold mine. Furthermore, the company is expected to engage in a copper concentrate offtake agreement and separate ore tolling agreement with Glencore. Furthermore, Glencore is also expected to offtake 100% of the copper concentrate produced at EHM. The acquisition is projected to double Evolution Mining’s annual copper production from its earlier forecast of between 34,000 to 38,000 tonnes. Worth noting is that the deal does not necessarily increase Evolution’s revenues from current gold production but will increase the company’s exposure to silver and copper and increase its stake in further exploration. [coinbase]
