Quartz vein outcrop on Connors Arc’s Aurora Flats. Image: Orion Minerals.
BY ELIZABETH FABRI
EVOLUTION Mining has agreed to acquire Orion Minerals’ Connors Arc gold exploration project, which is strategically positioned near Evolution’s existing Mt Rawdon, Mt Carlton and Cracow operations in central QLD.
The acquisition includes an upfront cash payment of $1.5 million, followed by two payments of $500,000, and a 2 per cent net smelter return royalty over gold produced from the project, with payments capped at $5 million.
Evolution Mining vice president Discovery Glen Masterman said Connors Arc was a technically compelling project with multiple and extensive alteration zones, which could be indicative of multiple preserved epithermal gold systems.
“The Connors Arc acquisition is in line with our strategy of building a pipeline of quality exploration projects,” Mr Masterman said.
“It represents a rare opportunity to secure a large and underexplored land position in a region where we are already operating and have significant expertise.”
Evolution executive chairman Jake Klein told The Australian Mining Review earlier in the year acquisition opportunities that fit the bill were few and far between in the current market, and it would only acquire a project if it improved the quality of its portfolio or was accretive to shareholders.
“For it to be accretive to shareholders there are really two scenarios where it can be in our view.
“One is where there is some distress or you have a motivated seller.
“The second scenario is where our geological or discovery team believes there is more upside than what is currently defined in the resources and reserves, and that is still an opportunity but it requires a geological call.”
Orion said funds from the sale would enable it to progress bankable feasibility study work on its flagship Prieska zinc-copper project and exploration on the Jacomynspan nickel-copper-cobalt project, both in South Africa.
