Battle North Gold To Be Acquired By Evolution Mining For $343 Million

Consolidation within the Red Lake mining camp of Ontario continued last night, with the Sunday evening announcement that Battle North Gold (TSX: BNAU) has agreed to be acquired by that of Evolution Mining (ASX: EVN). The transaction will see Battle North acquired for total consideration of $343 million.

The transaction will see shareholders of Battle North receive $2.65 per common share in the form of cash, which equates to a 46% premium over Friday’s closing price of the equity. The transaction is subject to approval of shareholders, with the meeting slated to occur in May 2021, as well as a termination fee of $14.8 million.

The acquisition of Battle North will see Evolution acquire the 28,000 hectare Bateman Gold project, which also features a new 1,800 tonne per day mill facility. The current feasibility study for the project contains a mineral reserve estimate of 635,000 ounces of gold at 5.54 g/t, as well as 390,000 measured and indicated ounces of gold at 7.09 g/t, and 343,000 ounces of gold on an inferred basis at 6.83 g/t gold. Current production estimates expect a mine life of eight years with annual production of 74,000 ounces at a cost per ounce of US$865.

Battle North Gold last traded at $1.82 on the TSX.

Information for this briefing was found via Sedar and Battle North Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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