Evolution Mining Ltd (ASX: EVN) will have full ownership of the Castle Hill Gold Deposit after reaching agreement with Norton Gold Fields to terminate Norton's right to mine.
Evolution will pay Norton an upfront cash payment of $12 million, an additional cash payment of $3 million six months after the completion of the transaction and a 2% net smelter royalty for the first 38,000 ounces of gold production from certain tenements within the deposit.
The ownership restructure allows Evolution to develop a package of tenements at Mungari that were quarantined by the rights held by Norton – delivering an immediate boost in ore reserves and expected to materially extend the mine life at Mungari.
Gold stocks have been looking healthy of late with Evolution shares up 0.8% to $3.15 at the time of writing and peers Regis Resources Limited (ASX: RRL) and Resolute Mining Limited (ASX: RSG) also up today, with Northern Star Resources Ltd (ASX: NST) slipping back slightly to $7.13.
