Queensland govt invests in Evolution's Mt Rawdon hydro project
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The news: Gold miner Evolution Mining has entered into a development investment agreement with government-owned CleanCo Queensland to progress its Mount Rawdon pumped hydro project towards a financial investment decision.
The numbers: Clean energy company CleanCo has agreed to provide initial funding of $30 million towards the project for further feasibility work, to be completed by 30 September.
CleanCo also has the option to acquire the project from Evolution and its 50:50 joint venture partner ICA Partners for an upfront payment of $50 million, on or before 30 September.
This could see CleanCo make a further payment of $100 million as a further deferred consideration for the acquisition, should it make a final investment decision to proceed with the project before 30 June 2028.
In this event, Evolution would sell the land encompassing the mine site to CleanCo for $90 million.
Evolution shares were up 4.4% to $6.72 at 2:40pm AEST, extending gains of more than 70% over the last 12 months.
The context: The Queensland government's investment involves the potential future development of a pumped hydro project at Evolution's Mount Rawdon gold mine, following the cessation of mining.
Evolution, which has operated the mine for over a decade, said the Mount Rawdon hydro project is one of the "most advanced, lowest capital intensive" pumped hydro projects in Australia.
What they said: "We welcome the Crisafulli government's interest and involvement in this landmark project, which is set to facilitate low-cost green power and provide jobs to the community and Queensland for decades to come," said Evolution's executive chair Jake Klein.
The source: ASX
