Following the announcement on June 4, Aeris agreed to pay Evolution Mining Ltd (ASX:EVN) A$60 million in cash upon closing of the transaction, a deferred payment of A$15 million on June 30, 2022, plus a 10% net value royalty July 1, 2022, to June 30, 2027, capped at A$50 million.
Aeris has funded the transaction through a fully underwritten A$40 million equity raising and A$30 million bridge debt facility.
“Great fit for Aeris”
Executive chairman Andre Labuschange said: “We welcome our new investors to the register while acknowledging the continued support of our existing shareholders, who have participated in our capital raising activities.
“The Cracow Gold Operations are a great fit for Aeris and we welcome the on-site team into the Aeris family.
“We are very excited at both the production and exploration potential at Cracow and have committed some $13 million to exploration over the next two years.”
Track record of profitability
The mine has been operating continuously since 2004, producing more than 1.4 million ounces over its life with a consistent track record of profitability and ore reserve replenishment:
- FY21 production guidance of 70–75,000 ounces of gold at C1 cash cost of A$980/ounce;
- At the current gold price, Cracow is forecast to deliver significant positive free cashflow over the first two years of Aeris’ ownership;
- The acquisition includes a highly prospective tenement package covering 903 square kilometres, which Aeris intends to aggressively explore; and
- Potential to utilise Aeris’ significant carried forward tax losses.