The acquisition of Battle North Gold will allow Evolution Mining to expand its footprint in the region and leverage the infrastructure of the two operations


Evolution Mining agrees to acquire Battle North Gold. (Credit: Steve Bidmead from Pixabay)

Evolution Mining has agreed to acquire all of the issued and outstanding shares of Battle North Gold for about C$343m ($275m).

As part of the agreement, Evolution Mining will acquire all of the issued and outstanding shares of Battle North at a price of C$2.65 ($2.12) per common share in cash.

Based in Vancouver, Canada, Battle North Gold is engaged in the development of the Bateman gold project near Red Lake, Ontario.

The Bateman gold project, which covers a 28,000-hectare land, includes a new 1,800tpd mill facility.

The project is currently permitted for 1,250tpd and is expandable to 2,500tpd with minimal capital.

According to a feasibility study, the project is estimated to host a mineral reserve of some 3.5 million tonnes, grading 5.54g/t gold for 635,000 ounces of contained gold.

The study revealed that the project is estimated to produce 74,000 ounces per annum over a mine life of eight years at an all-in sustaining cost of $865 per ounce.

Evolution executive chairman Jake Klein said: “This acquisition provides Evolution with an opportunity to expand our footprint in the region and create value by leveraging the infrastructure of the two operations.

“The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300,000 ounces of gold per annum from Red Lake.”

Evolution stated that it will fund the transaction from its current cash balance and available credit facilities, and will not require Evolution shareholders’ approval.

Battle North president, CEO, and director George Ogilvie said: “The all-cash offer is at a significant premium to market and reflects the extraordinary efforts of the Battle North team to create value at the Bateman Gold Project and ultimately deliver an outstanding outcome for Battle North’s shareholders.

“We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution and this Transaction reduces development and execution risk.

“Evolution is a highly regarded mining company with a demonstrated ability to successfully operate internationally. The Battle North team looks forward to working with Evolution to close the Transaction and smoothly transition operations to the new team.”

The acquisition is expected to be completed in the second calendar quarter of 2021, subject to necessary conditions.

Canaccord Genuity is acting as a financial advisor to Battle North for the transaction, Osler, Hoskin & Harcourt is serving as the company’s legal advisor.

TD Securities is serving as financial advisor to Evolution, while McCarthy Tétrault is providing legal services to the company.