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Gold miner Evolution Mining has completed the acquisition of TSX-listed Battle North Gold Corporation.

Evolution in March launched a C$343-million deal to acquire Battle North Gold Corporation, to gain ownership of the Bateman gold project in the Red Lake gold district, in Ontario.

The Bateman project is contiguous to Evolution’s own Red Lake operations.

Under the terms of the proposed transaction, Evolution agreed to acquire all of the issued and outstanding shares of Battle North at a price of C$2.65 a share in cash.

“This acquisition provides Evolution with an opportunity to expand our footprint in the region and create value by leveraging the infrastructure of the two operations. The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300 000 oz of gold a year from Red Lake,” said Evolution executive chairperson Jake Klein.

“In the 12 months we have been operating at Red Lake, we have demonstrated that we are a committed steward of the region. This expansion of our footprint will provide us with an opportunity to build on our track record as a safe and sustainable operator for the long-term benefit of a broad range of stakeholders, including the local workforce, regional communities and our Wabauskang and Lac Seul First Nation partners.”

The miner is expected to provide further details on the long-term outlook of its Red Lake operation in the September quarter, post the integration of the Battle North assets into an updated life-of-mine plan.

Meanwhile, Evolution noted that a five-year loan term of A$440-million from a syndicate of eight banks was used to fund the transaction and associated costs, with the repayment schedule consisting of A$50-million a year from 2022 to 2025, with the balance to be repaid in 2026.

The first A$15-million payment is due in October this year.