CAHPF - Evolution Mining extends lives of two Australian mines restructures debt

2023-06-05 09:29:46 ET

Evolution Mining ( OTCPK:CAHPF ) said Monday it has extended the lives of two mining operations in Australia, and that it has restructured its debt maturity profile to increase balance sheet flexibility.

The company said it has extended the life of its Mungari gold mine and committed A$250M (~US $165M) for a process plant expansion that will unlock a large regional resource base, lower all-in sustaining costs and raise production.

The Mungari plant will be expanded from 2M metric tons/year to 4.2M tons/year, boosting gold production from 135K oz/year to 200K oz/year between 2027 and 2032, and reduce AISC by 18% to $1,750/oz.

Evolution ( OTCPK:CAHPF ) said its feasibility study for the expansion delivered an internal rate of return of 19%-28% with a three-year payback and incremental net present value of $260M-$600M.

Evolution ( OTCPK:CAHPF ) also said it has completed a prefeasibility study that extends the life of its Ernest Henry copper and gold mine to 2040, and will spend A$15M in a feasibility study and A$7.5M in a drilling program.

The miner also said it has restructured its debt maturity profile to include a $200M U.S. private placement and the replacement of the existing A$590M term loan facilities with a reduced $300M four-year term loan facility.

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