The Cracow Gold Mine is on track to produce 82,500 87,500 ounces of gold in the 2020 financial year and generate net mine cash flow of $84 to $89 million.
() has entered into a binding agreement with () to acquire the Cracow Gold Mine in Queensland.
Cracow is an established, high grade, low-cost underground gold mining operation and processing facility operating continuously since 2004, producing more than 1.4 million ounces over its life, with a consistent track record of profitability and reserve replacement.
The mine is on track to produce 82,500 87,500 ounces of gold in the 2020 financial year and generate net mine cash flow of $84 to $89 million.
Aeris has agreed to pay Evolution $60 million in cash upon closing of the transaction, a deferred payment of $15 million on June 30, 2022 plus a 10% net value royalty from July 1, 2022 to June 30, 2027, capped at $50 million.
Completion of the transaction is expected to occur on June 30, 2020.
Aeris executive chairman Andre Labuschagne said: This is a truly transformational transaction for Aeris and will be immediately accretive in value.
The acquisition provides us with asset and commodity diversity, strong cashflow generation and high value synergies.
Cracow will be a perfect fit for the unique skill set of our management team, who have a track record of extracting value and life extensions, as demonstrated at the Tritton mine, and previously with Norton Gold Fields at the Paddington gold mine. Our immediate focus will be on transitioning Cracow into the Aeris culture and aggressively investing in the mine life extension opportunities we have identified.
Labuschagne added: Aeris inherits a well-run, proven operation which has been a consistent performer for Evolution.
Importantly for us, there is a strong operating team in place that has a culture of continuous improvement.
We are confident that Cracow management and the workforce will fit well with Aeris own culture and the renewed focus to reinvesting in mine life extensions which Aeris will bring.
Aeris intends to fund the transaction through a fully underwritten $40 million equity raising and a $30 million acquisition bridge debt facility.
A new $15 million guarantee facility has also been secured to provide for the replacement of financial assurances relating to the mine and will be provided by SPOV (Special Portfolio Opportunity V), a subsidiary of a fund managed by PAG.
The equity raising will be conducted via a fully underwritten institutional placement and an underwritten 2.02 for 1 pro-rata accelerated renounceable entitlement offer.
Aeris has already secured commitments from its three largest shareholders, representing about 60% of the register to commit to participating in the equity raising, subject to a maximum holding of 19.99% at completion.
The Cracow Gold Mine is about 500 kilometres north-west of Brisbane in a highly endowed goldfield with gold mineralisation hosted in steeply dipping structurally controlled low sulphidation epithermal veins.
The underground mine is accessed through a single surface decline with ore primarily mined via open stoping through a modified Avoca mining sequence.
Cracow has a strong track record of reserve and resource replacement and Aeris plans to aggressively invest in brownfield and greenfield exploration with the aim of growing the resource base to extend mine life.
Multiple near term opportunities for resource conversion have been identified with about $13 million budgeted over the next two years for exploration, with key priorities including both underground near-mine extensions (e.g. Killarney) as well as nearby open-pit deposits (e.g. the Golden Plateau and Roses Pride).
Extracting value through integration efficiencies will also be a key driver of Aeris immediate plan with about $4 million of targeted annual cost synergies as well as the potential for utilising Aeris existing carried forward tax losses ($256 million at June 30, 2019).
Over the two year period to June 30, 2022, Aeris expects Cracow to generate more than $100 million of net mine cash flows at the current gold price, with pro forma Aeris group EBITDA of $272 million to $282 million and pro forma group net mine cash flows of $137 million to $155 million.
This significant cashflow will provide for both investment in life of mine extension projects at Cracow and Tritton as well as to also continue deleveraging Aeris balance sheet.
To protect the very significant near term positive cashflows from Cracow, Aeris intends to enter a prudent gold hedging program, with an initial focus on the first 12 months.
See original here:
- Cryonics, brain preservation and the weird science of cheating death - CNET - July 6th, 2020
- Nano One update: progress on battery technology - The Armchair Trader - July 6th, 2020
- Highland Copper Announces Further Extension of White Pine Closing - GlobeNewswire - July 6th, 2020
- Registry is an arm of the Court and an extension of its dignity, says SC - The Leaflet - July 6th, 2020
- Hacking the Apocalypse: Your new guide to surviving the end of the world - MSN Money - July 6th, 2020
- How to get rid of fruit flies in your house | AgriLife Today - AgriLife Today - July 6th, 2020
- 'Life in the old dog yet': Hackney Law Centre thanks donors as it celebrates 40th anniversary - Hackney Citizen - July 6th, 2020
- David and Victoria Beckham plan garden extension with 91 metre lake at their Great Tew home - Banbury Guardian - July 6th, 2020
- Controlled Intelligent Packaging, Preservation and Shelf-Life Extension Market 2020 | by Manufacturers | by Countries | by Types and by Applications |... - July 5th, 2020
- Extension offers online session to help ag producers and others manage stress - Nevada Today - July 5th, 2020
- North America Blueberry Extract Market is expected to expand at the highest CAGR By 2027 | Top Business Players: Life Extension, Mazza Innovation,... - July 5th, 2020
- Kitchens Across America Trust Eat Cleaner Fruit + Veggie Wash, Available This July in New Value Size to Give People Kitchen Confidence | 2020-07-02 |... - July 5th, 2020
- Bruce Power partners give thousands to local charities - BlackburnNews.com - July 5th, 2020
- Antioxidant Supplement, Market Study for 2020 to 2026 Providing Information on Key Players, Growth Drivers and Industry Challenges|Vibrant Health, AST... - July 5th, 2020
- New Survey Reveals 74 Percent of Americans are Concerned that Vitamins and Supplements are not Backed by Trustworthy Research - PRNewswire - June 13th, 2020
- Maintaining health and nutrition while staying at home - WSAW - June 13th, 2020
- Why a decision on a second US plutonium-pit-production factory should be delayed - Bulletin of the Atomic Scientists - June 13th, 2020
- The Role Of Nuclear Power In A Clean Energy System - Seeking Alpha - June 13th, 2020
- Six months to break the deadlock on life after Brexit - The Advocate - June 13th, 2020
- Nukes in Space: the Extinction Rebellion Yet to Be - CounterPunch.org - CounterPunch - June 13th, 2020
- Further extension to mother-and-baby homes inquiry - RTE.ie - June 13th, 2020
- Enel Awarded 106.3 MW in Italy in GSE's Second Auction - Saurenergy - June 5th, 2020
- Has the United States Abandoned Arms Control? - War on the Rocks - June 5th, 2020
- Artax Biopharma Announces Series B Financing Extension to Advance First-in-Class Autoimmune Disease Therapy - P&T Community - June 5th, 2020
- Drivers granted automatic licence renewal extension - Farming Life - June 5th, 2020
- COVID-19 Impact on Melatonine Market Research Report: Probable Key Development To Be Observed Market States And Outlook Across By 2026 - News Distinct - June 5th, 2020
- Reishi Mushroom Supplements Market 2020- Analysis And In-Depth Research On Market Size, Trends, Emerging Growth Factors And Forecast To 2026 - Weekly... - June 5th, 2020
- Tuskegee one of three HBCU land-grants awarded $1.6M USDA Centers of Excellence grant - Tuskegee University - June 5th, 2020
- Eye Health Supplements Market 2020 Growth by Opportunities, Application, Driver, Current Trends and Forecast by 2026 - Cole of Duty - June 1st, 2020
- The Dak Prescott extension: What have the Cowboys offered? Plus, where negotiations stand - The Dallas Morning News - June 1st, 2020
- Milk Thistle Health Tonic Market In Depth Research with Industry Driving Factors, Consumer Behaviour Analysis, Future Trends, Key Players and Forecast... - June 1st, 2020
- Explained: What RBIs extension of loan moratorium means - The Indian Express - June 1st, 2020
- How to stop earwigs and coreopsis beetles: Ask an expert - oregonlive.com - June 1st, 2020
- Orthopedic Extension Devices Market 2019 | How The Industry Will Witness Substantial Growth In The Upcoming Years | Exclusive Report By Industry... - June 1st, 2020
- Goldstar Insurance and Prudential partner to offer COVID -19 cover - Uganda - June 1st, 2020
- Punjab Agricultural University gives warm send-off to Bhalla - Hindustan Times - June 1st, 2020
- Wife honors husband with continuing education center - Atlanta Journal Constitution - April 11th, 2020
- Letters To the Editor | Opinion - westvalleyview.com - April 11th, 2020
- The Military's E-6 Mercury Is Far Deadlier Than The F-35 Stealth Fighter - The National Interest - April 11th, 2020
- Extend New START -- The World Can't Afford a U.S.-Russia Nuclear Arms Race Too - Just Security - April 11th, 2020
- Brandon Scherff's excited to be in Washington, looking to be Redskin for life - Redskins Wire - April 11th, 2020
- "Life Won't Be Same Ever": Odisha First To Extend Lockdown Till April 30 - NDTV News - April 11th, 2020
- Get Growing: Good news, good riddance to gypsy moth caterpillars this year - The Recorder - April 11th, 2020
- Alkane Resources regional drilling south of TGO returns further broad, high-grade gold - Proactive Investors Australia - April 11th, 2020
- He gave so much of himself to improving life in Douglas: Tributes paid to Billy Coleman - Echo Live - April 11th, 2020
- WAIVER EXTENSION, REVISED TIMING OF ENFORCEMENT - pa.gov - March 24th, 2020
- The U.S. Military's Behind-the-Scenes Moves To Protect Nuclear Readiness Amid Coronavirus - Newsweek - March 24th, 2020
- Mine life extension puts Kisladag back on the map - Creamer Media's Mining Weekly - February 24th, 2020
- WVU aims to make an impact in everyday West Virginians' lives - WV News - February 24th, 2020
- Over the Garden Gate: Bees are native pollinators - Ellwood City Ledger - February 24th, 2020
- What is the real cost of a Richards Avenue extension? - Santa Fe New Mexican - February 24th, 2020
- New Gold updates Rainy River and New Afton mine plans - The Northern Miner - February 24th, 2020
- Responsible Battery Coalition Applauds University of Michigan Research on Lithium-Ion Battery Degradation Calls Research Important Step in Educating... - February 24th, 2020
- Bruce Power marks next step of major project collaboration with ATS in Cambridge - TheRecord.com - February 24th, 2020
- Edited Transcript of ELD.TO earnings conference call or presentation 21-Feb-20 4:30pm GMT - Yahoo Finance - February 24th, 2020
- Senate panel agrees adding time to safe haven for babies a good step - KSL.com - February 24th, 2020
- Swine building maintenance the topic of statewide workshops - Discover Muscatine - February 24th, 2020
- Stress it is not a sign of weakness | News, Sports, Jobs - Morning Journal News - February 24th, 2020
- Arcadis working with the Georgia Department of Transportation to improve traffic congestion - Benzinga - February 24th, 2020
- Life With GDPR: Episode 36- Extension of British Airways Response Time for Proposed Fine - JD Supra - February 8th, 2020
- Max Muncys extension helps the argument for new service time rules - Beyond the Box Score - February 8th, 2020
- Noah Rubin's Behind The Racquet With Robert Ryland | Tennis 10sBalls - 10sBalls - February 8th, 2020
- Satellites: The $500 billion business | Industry Trends - IBC365 - February 8th, 2020
- The many lives of charcoal - Penn: Office of University Communications - February 8th, 2020
- Space Mining the Quest for the Worlds First Trillionaire Amid Earths Growing Resource Scarcity - Wccftech - February 8th, 2020
- [The Turning Point] How a family car led to the idea of deep tech startup ION Energy - YourStory - February 8th, 2020
- Trump travel ban extension leaves Africans angry and disappointed - The Guardian - February 8th, 2020
- Los Angeles Lakers: Not trading for Andre Iguodala was the right move - Lake Show Life - February 8th, 2020
- The Ethics of Radical Life Extension | TalkDeath - January 27th, 2020
- Boldly Audition for These Sci-Fi Gigs in Honor of 'Star Trek: Picard' - Backstage - January 27th, 2020
- 3 Ways To Reboot Your Life In 2020 - Forbes - January 27th, 2020
- Watch: Kirk Cousins fumbles away comeback in Pro Bowl - Bring Me The News - January 27th, 2020
- Streetfighter and the future of the Challenger 2 - Army Technology - January 25th, 2020
- Iceni Courage to Be Revamped - Offshore WIND - January 25th, 2020
- The U.S. is Boosting Production of Nuclear Bomb Cores (For More Nuclear Weapons) - The National Interest Online - January 25th, 2020
- How Does the Air Force's F-16 Stack up Against the Best Chinese and Russian Fighters? - The National Interest Online - January 25th, 2020
- Race to exploit the worlds seabed set to wreak havoc on marine life - The Guardian - January 25th, 2020
- Rangers broadcasts to remain on 105.3 The Fan (KRLD-FM) after club signs multi-year extension - The Dallas Morning News - January 25th, 2020
- Pakistans judges briefly stand up to the army - The Economist - January 25th, 2020
- Merck-partnered biotech hands Roche its half-life extension tech as it pivots to immuno-oncology - Endpoints News - January 18th, 2020