RED LAKE, Ont. — Barely a year after completing the US$475 million purchase of Goldcorp's Red Lake gold complex, Australia-based Evolution Mining has struck another deal.
This time it's putting down CDN$343 million to acquire the assets of Battle North Gold, formerly Rubicon Minerals Corp.
Battle North CEO George Ogilvie says the all-cash offer represents a 46 per cent premium over the last closing price for its shares on the Toronto Stock Exchange.
He said the offer "reflects the extraordinary efforts of the Battle North team to create value at the Bateman Gold Project," adding "We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution."
Jack Klein, Evolution's CEO, said the companies started their negotiations "with a clear alignment that a consolidation of the properties would create value that would not be available if they were developed and operated separately. George and his team have done a very good job at progressing the Bateman Gold Project to this point."
Klein also said "this is an ideal window to consolidate the properties ahead of the construction of the Bateman mine which is now in its early stages."
The Bateman project, which includes a mill, has been on course for commercial production by late 2022. The mine's current projected life span is eight years.
Evolution has already invested heavily in the modernization of its existing Red Lake properties.
