Join our daily newsletter At The Bell to receive exclusive market insights
- Evolution Mining’s (EVN) proposed acquisition of Battle North Gold has been approved by Battle North’s shareholders
- The company plans to acquire all outstanding shares in Battle North for a total consideration of approximately A$363 million
- However, the transaction is still subject to approval by the Supreme Court of British Columbia
- If approved by the Court, the acquisition transaction should be completed by May 19, 2021
- Evolution Mining is down 1.39 per cent and trading at $4.98 per share
Evolution Mining’s (EVN) proposed acquisition of Battle North Gold has been approved by Battle North’s shareholders.
Battle North Gold is a Canadian gold mine developer, that is listed on the Toronto Stock Exchange (TSX). The company is primarily focussed on developing the Bateman Gold Project, located near Red Lake in Ontario.
At a meeting of shareholders on May 11, 2021, 99.8 per cent of Battle North’s shareholder voted in favour of Evolution Mining acquiring the business.
Evolution Mining plans to acquire all outstanding shares in Battle North for C$2.65 (about A$2.81) per share in cash. This would result in a total cash consideration of approximately C$343 million (about A$363 million).
Evolution Mining’s Executive Chairman, Jake Klein, was pleased to see the Battle North shareholders’ overwhelmingly positive support for the transaction.
“This acquisition provides Evolution with an opportunity to expand our footprint in the Red Lake region and create value by leveraging the infrastructure of the two operations,” he said.
“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,” he added.
The transaction for the acquisition of Battle North is still subject to approval by the Supreme Court of British Columbia. The hearing where the Court’s approval may be sought is scheduled for May 17, 2021.
If approved by the Court on this date, the acquisition transaction could be completed by May 19, 2021.
Evolution Mining is down 1.39 per cent, trading at $4.98 per share at 2:59 pm AEST.
