Navarre Minerals has entered into a binding agreement with Evolution Mining to purchase the Mt. Carlton gold mine including Crush Creek in Queensland for up to $90 million.

The Mt Carlton Operations is an open pit and underground gold mining operation, located approximately 150 kilometres south of Townsville, Queensland with a proven operational track record, producing ~0.7 Moz of gold since being commissioned in 2013.

Mt Carlton will become a cornerstone asset with clearly identified near mine and greenfield exploration upside for Navarre to leverage its expertise in gold exploration to underpin future mine life extension and potential expansion. 

The deal comprises $40 million payable upon completion, comprising a mix of equity and cash, up to $25 million payable on cumulative gold production milestones, and up to $25 million contingent consideration payable in through a 5% gold price linked royalty only where the average spot gold price is greater than $2,250/oz in a given quarter.

Navarre’s economic interest in Mt Carlton began on 1st of October with a formal completion expected in the December quarter, during which time Evolution will provide support for a safe and smooth change of ownership.

Read the full announcement here: Transformational Acquisition of Mt Carlton & Equity Raising

Image Source: Evolution Mining