Australia-based producer Evolution Mining (ASX: EVN) is acquiring Red Lake-focused gold developer Battle North Gold (TSX: BNAU) in a $343-million, $2.65 a share, all-cash deal. The two companies have entered into a definitive arrangement agreement with Evolution agreeing to acquire all of the Battle North shares outstanding.
The $343-million cash offer represents a 46% premium to Battle North’s last close and a 54% premium to the company’s 20-day weighted average price.
According to Battle North president and CEO George Ogilvie, the offer from Evolution offers a premium to shareholders with synergies expected from the combination of Battle North’s Bateman and Evolutions’ Red Lake complex in the Ontario mining district.
“The all-cash offer is at a significant premium to market and reflects the extraordinary efforts of the Battle North team to create value at the Bateman gold project and ultimately deliver an outstanding outcome for Battle North’s shareholders. We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution and this transaction reduces development and execution risk.”
The Australian miner made its entry into Canada with the 2019 US$375-million purchase of Newmont’s (TSX: NGT; NYSE: NEM) Red Lake complex, with an additional US$100 million of payments contingent on resource growth.
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