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Aeris Resources completes acquisition of operating Cracow gold mine

Cracow is an established, high-grade, low-cost gold mine 500 kilometres northwest of Brisbane in Queensland.

Aeris Resources Ltd - Aeris Resources completes Cracow Gold Operations acquisition
The acquisition includes a highly prospective tenement package covering 903 square kilometres

Aeris Resources Ltd (ASX:AIS) has completed the acquisition of the Cracow Gold Operations, an established, high-grade gold mine around 500 kilometres northwest of Brisbane, Queensland.

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.

Quick facts: Aeris Resources Ltd

Price: 0.061 AUD

Market: ASX
Market Cap: $114.27 m

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Aeris Resources Ltd's (ASX:AIS) executive chairman Andre Labuschagne speaks to Proactive's Andrew Scott after entering into a binding agreement with Evolution Mining Ltd (ASX:EVN) to acquire the Cracow Gold Mine in Queensland. Aeris has agreed to pay Evolution $60 million in cash upon closing...

on 8/6/20

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