Evolution Mining tanks after $525m share sale
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The news: Shares in gold miner Evolution plunged on Wednesday after the company completed a $525 million share sale to help buy a major stake in the Northparkes Copper-Gold Mine in NSW. A $200 million five-year term debt facility is also helping fund the purchase.
The numbers: Evolution shares were down 61 cents, or 14%, to $3.52 at 11.02am (AEDT).
The $525 million fully underwritten institutional placement offered new shares at $3.80 each and was completed earlier on Wednesday. A sale to retail investors will offer shares at the same price from 13 December.
The context: Evolution is paying $US475 million for an 80% stake in the Northparkes Copper-Gold Mine from CMOC Group.
Evolution chief executive Jake Klein said Northparkes is a long life gold and copper operation that is cash flow generating from day one.
The source: Evolution Mining
