Deal: Evolution Mining acquired an economic interest in the Ernest Henry Mine

Value: Almost $4 billion market capitalisation

Area: M&A

Key players: The Allens team was led by M&A partners Guy Alexander (pictured left) and Mark McAleer (pictured right), with assistance from senior associate Bree Rowswell and lawyer Alistair Stolz.

The equity capital markets team included partner Julian Donnan, senior associate Addison Ma and lawyer Tom Hall. The finance team included partner Renee Boundy, senior finance counsel Phillip Cornwell, associate Sunny Jong and law graduate Anthony Tridgell.

The King & Wood Mallesons team was led by partner Nicholas Pappas with support from senior associates Kate Lindner and Anthony Boogert. Partner Tim Sherman also provided tax advice. 

Deal significance: Gold mining company Evolution Mining acquired an economic interest in the Ernest Henry Mine in Queensland, funded by an equity raising and debt package.

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The deal firmly establishes Evolution as a global mid-tier miner, with a market capitalisation approaching $4 billion.

Under the deal, Evolution Mining will pay $880 million to Glencore for a 30 per cent economic stake in the EHM operation and will be entitled to 100 per cent of the mine’s gold, and 30 per cent of its copper and silver production subject to an agreed life of mine and block model. Glencore will purchase the copper and silver payable delivered to Evolution for cash at market value.

Evolution will also commit to ongoing monthly cash contributions equal to 30 per cent of production and capital costs associated with copper concentrates.

Glencore will continue to own 100 per cent of the world-class copper-gold-silver mining operation and will continue to manage the day to operations at EHM.

The deal also includes a 49 per cent economic interest in potential expansions of the operations at Ernest Henry through new reserves and regional acquisitions.