Evolution Mining sells Pajingo mine to Minjar Gold for $40m

Evolution Mining sells Pajingo mine to Minjar Gold for $40m

Australia’s second-biggest bullion miner Evolution Mining (ASX:CAH) has agreed to sell its Pajingo mine and surrounding exploration in North Queensland to China’s Minjar Gold for up to US$40 million. 

Minjar will pay $42 million in cash, in addition to $10 million in future royalties for the mine which generated 68,630 ounces of gold this year up until 30 June, the lowest total among Evolution’s mines.

Jake Klein, Evolution’s executive chairman said: “Evolution has grown significantly in the past 18 months and it now makes strategic sense for the asset to be operated by an emerging gold producer that can provide the right level of focus on further extending the mine’s operating life.”

Evolution previously said it would consider offers for its high-cost mines as it looks to improve the quality of its portfolio.

Following the announcement of the sale, Klein thanked the Pajingo team noting it “had made a very important contribution to our business over the last six years.”