Ramelius Resources Limited has announced that it has executed binding documentation to acquire the Edna May gold mine (“Edna May”) located near Westonia in Western Australia from ASX-listed Evolution Mining Limited.
Ramelius to acquire the operating Edna May gold mine from Evolution for A$40M cash on completion plus capped royalty payments;
Annualised Group production estimated to lift by ~54% to 195-205,000oz at an AISC of A$1,120-A$1,220/oz, with AISC expected to remain similar to previous;
Group Mineral Resources1 to increase by 38.6% to 3.044Moz and Ore Reserves1 to increase by 105% to 831koz (JORC 2012); and
Potential to take Edna May beyond the current 4 year mine plan with longer life open pit or underground options.
Ramelius’ Managing Director, Mark Zeptner, said,
“The acquisition of Edna May represents the next step in our stated ambition to build on the strength of our existing operations at Mt Magnet and Vivien. Upon completion, we become a 200,000 ounce pa gold producer, with all operations within a one hour flight from Perth.
“Not only does this acquisition drive a significant increase in group Mineral Resources and Ore Reserves, as a going concern it also delivers excellent returns on our initial A$40M investment with minimal capex imposts.
“We are also particularly excited about the potential for Edna May to significantly increase both its Ore Reserves and annual production via further extensions which represent huge optionality for Ramelius in the future.
“Our management team has the skills and experience to collaborate with the existing Edna May workforce to deliver on the turnaround started by Evolution and in extending the future potential of the mine.”