Pajingo gold mine in North Queensland.

By Elizabeth Fabri

EVOLUTION Mining has signed an agreement to sell Pajingo gold mine and surrounding exploration tenements to Minjar Gold for $52 million.

The deal involved a $42m upfront cash payment, and royalty payment of up to $10m for gold production above 130,000 ounces, which would result in a loss of $77.3m for Evolution based on the carrying value of the asset.

“Pajingo has made a very important contribution to our business over the last six years,” Evolution executive chairman Jake Klein 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.”

“We thank all of our team at Pajingo for their contribution to Evolution; their level of focus and commitment has ensured Pajingo continues to be a profitable gold mine 30 years after commencing production.”

In response to the sale, Evolution has lowered its FY17 guidance to between 745,000 and 800,000 ounces from the original guidance of between 800,000oz and 860,000oz.