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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.