King & Wood Mallesons advised Navarre Minerals Limited on its purchase of Queensland’s Mt Carlton Gold Mine, and associated assets, from Evolution Mining Limited.
Evolution Mining Ltd has entered into a binding agreement with Navarre Minerals Ltd to sell the Mt Carlton gold mine (includes Crush Creek) in Queensland for a total consideration of up to A$90 million.
The total consideration consists of: A$40 million payable upon completion, comprising a mix of equity and cash. Evolution has agreed to participate in Navarre’s equity raise up to a maximum shareholding of 19.9% (approximately A$20 million), with the final holding determined after the equity raise has concluded; up to A$25 million contingent consideration payable on cumulative gold production milestones from Crush Creek with A$5 million payable upon achievement of 50 000 oz, A$5 million payable upon achievement of 100 000 oz and A$15 million payable upon achievement of 175 000 oz and up to A$25 million contingent consideration payable in the form of a 5% gold price linked royalty where the average spot gold price is greater than A$2250/oz in a given quarter. The royalty is payable on production from both Mt Carlton and Crush Creek from 1 July 2023 for up to 15 years.
Navarre Minerals (ASX:NML) is an Australia-based mineral exploration and mining company focusing on gold exploration in Victoria.
Evolution Mining (ASX:EVN) operates five wholly owned mines across Australia and Ontario, Canada.
The KWM team was led by partners, Scott Langford (Picture) and Will Heath, supported principally by senior associates Evelyn Peter, James Semit and David Vincent.
Involved fees earner: Will Heath – King & Wood Mallesons; Scott Langford – King & Wood Mallesons; Evelyn Peter – King & Wood Mallesons; James Semit – King & Wood Mallesons; David Vincent – King & Wood Mallesons;
Law Firms: King & Wood Mallesons;
Clients: Navarre Minerals Limited;