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Evolution investing in exploration

Tue Sep 17 2019

 

Gold miner Evolution Mining has struck two new earn-in agreements over early stage exploration projects in both Queensland and Western Australia, worth a potential A$30-million combined.

 

Evolution has entered into an earn-in agreement with fellow-listed Musgrave Minerals over the Lake Austin portion of the Cue project, in Western Australia, under which the gold miner could earn a 75% interest in the joint venture (JV) by spending A$18-million over a five-year period.

 

Evolution would have a minimum expenditure of A$4-million over the project area, over the first two years of the earn-in period.

 

Under the terms of the agreement, Evolution would also subscribe for 18.6-million shares in Musgrave, for a cash consideration of A$1.5-million, giving Evolution a 4.59% stake in Musgrave.

 

Musgrave will retain full ownership of the areas surrounding the Lena and Break of Day resources, and the Mainland Option area, with the junior to act as operator of the JV during the minimum spend period.

Musgrave MD Rob Waugh said on Tuesday that the company was pleased to partner with Evolution.

“The JV will fast-track exploration and we look forward to leveraging Evolution’s extensive technical knowledge and financial resources with our in-house expertise to accelerate potential gold discoveries at Cue. This is a positive result for Musgrave and a strong endorsement of the company’s projects and upside exploration potential.”

 

Evolution VP for discovery and business development Glen Masterman said that Cue had the ability to generate new drill results that extend previously identified mineralised zones.

 

“This agreement is consistent with Evolution’s strategy of focusing on orogenic and epithermal deposit styles that can create value through future discovery.”

 

Meanwhile, Evolution has also signed an earn-in agreement with privately held Basin Gold over its Crush Creek project, in Queensland, which is some 30 km from the company’s own Mt Carlton operation.

 

Under the terms of this agreement, Evolution would make an initial A$2-million payment to Basin Gold on the grant of a mineral development licence, with the company also earning a 70% interest in the project by sole funding A$7-million in exploration over a two-year period.

 

Once the earn-in was met, Evolution would have the option of purchasing the remaining 30% interest in the project for A$4.5-million, and a 10% net smelter royalty on any production above 100 000 oz of gold.

 

Source: https://www.miningweekly.com