In morning trade, the gold miner's shares are down 4% to $3.86.

Why is the Evolution share price falling?

Investors have been selling down the Evolution share price today after a pullback in the gold price offset the release of a positive announcement this morning.

The price of the precious metal fell overnight amid concerns that the US Federal Reserve could increase interest rates sooner than expected.

It isn't just the Evolution share price falling. At the time of writing, the S&P/ASX All Ords Gold index is down 2.2%.

What did Evolution announce?

Failing to boost the Evolution share price today was news that it has successfully completed the sale of the Mt Carlton gold mine to Navarre Minerals Limited (ASX: NML).

As per the agreement, Evolution has received the upfront consideration of A$40 million, comprising A$26.8 million in cash and 176,565,396 Navarre shares. The latter equates to a 12.9% shareholding in Navarre.

In addition, the agreement includes up to A$25 million contingent consideration payable on cumulative gold production milestones from Crush Creek. This comprises A$5 million payable upon achievement of 50,000 ounces, A$5 million payable upon achievement of 100,000 ounces, and A$15 million payable upon achievement of 175,000 ounces.

Finally, Evolution will receive up to an additional A$25 million in the form of a 5% gold price linked royalty when the average spot gold price is greater than A$2,250/oz in a given quarter. The royalty is payable on production from both Mt Carlton and Crush Creek from 1 July 2023 for up to 15 years.

Why is Evolution selling Mt Carlton?

Evolution's Executive Chairman, Jake Klein, has previously explained the rationale for the asset sale.

He said: "Mt Carlton was Evolution's first development project and has generated excellent returns for shareholders since it was commissioned in 2013. With the Company focussed on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who can focus on extending the operation's mine life."

"The exposure we have retained will enable Evolution shareholders to benefit from the future success of the operation. Evolution would like to thank our employees, contractors, suppliers, the traditional custodians of the land the Birriah People, and the local community for their contribution to Mt Carlton's success. We are confident that Navarre will be a great partner for those stakeholders in the future," he added.

The Evolution share price is down 27% in 2021.

The post Evolution (ASX:EVN) share price falls despite completing Mt Carlton sale appeared first on The Motley Fool Australia.

In morning trade, the gold miner's shares are up 3% to $3.73.

Why is the Evolution share price rising?

Investors have been bidding the Evolution share price higher this morning following a rise in the gold price and the release of an announcement.

In respect to the latter, Evolution has announced a binding agreement with Navarre Minerals Limited (ASX: NML) to sell the Mt Carlton gold mine (including Crush Creek) in Queensland for a total consideration of up to $90 million.

The release notes that the total consideration comprises $40 million payable upon completion, up to $25 million contingent consideration payable on cumulative gold production milestones, and up to $25 million contingent consideration payable in the form of a 5% gold price linked royalty. This is applicable when the average spot gold price is greater than A$2,250 an ounce in a given quarter. The royalty is payable on production from both Mt Carlton and Crush Creek from 1 July 2023 for up to 15 years.

Evolution also revealed that it has agreed to participate in Navarre's equity raise up to a maximum shareholding of 19.9% (approximately $20 million). The final holding will be determined after its equity raise has concluded.

Evolution's Executive Chairman, Jake Klein, commented: "Mt Carlton was Evolution's first development project and has generated excellent returns for shareholders since it was commissioned in 2013. With the Company focused on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who can focus on extending the operation's mine life."

"The exposure we have retained will enable Evolution shareholders to benefit from the future success of the operation," he added.

Updated guidance

Evolution has updated its guidance to reflect the sale. Evolution has reduced its FY 2022 production slightly to 670,000 – 725,000 ounces.

Positively, the operation's higher costs mean that Evolution lowered its all-in sustaining cost (AISC) guidance by A$40 per ounce to A$1,180 – A$1,240 per ounce.

The Evolution share price is down 30% in 2021.

The post Here's why the Evolution (ASX:EVN) share price is charging higher appeared first on The Motley Fool Australia.

This comes after the ASX gold and silver explorer reported on its air core drill results this morning.

What drill results did Navarre report?

The Navarre share price is well and truly on the rise today. Indeed, this rise comes after the company reported "outstanding gold and silver results". These results were detected at its Glenlyle project in western Victoria.

The assay results come from Navarre's 8,400 metre air-core drilling program. The top results included grades of up to 301 grams per tonne of silver. Additionally, it reported 1.3 grams per tonne of gold.

Navarre said the strong results indicate it is "honing in on a large concealed polymetallic mineralised system". The company has already started a 2,000-metre diamond core drilling program to further understand the mineralised system.

Comments from the managing director

On the results, Navarre's managing director, Ian Holland said:

The latest air-core drilling results are outstanding and we have immediately kickstarted a diamond core drilling campaign to test the depth extents of a potentially large polymetallic mineral system on the Glenlyle tenement.

The mineralised footprint at Morning Bill has now doubled in strike length, with further extensions likely given visual analysis of material drilled but not yet assayed.

Holland added that Navarre was optimistic about the "broad widths and tenor of the results… as well as the presence of a large magnetic low corresponding with this mineralisation".

The company stated it will now focus on verifying and reporting the remaining results from the air core drilling program. In addition, it is also focusing on completing the 2,000-metre diamond core drilling program it just commenced.

Share price snapshot

Navarre Minerals shares have gained 61% over the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) is up 10% since this time last year.

So far in 2021, the Navarre share price is down 31%.

The post Why the Navarre Minerals (ASX:NML) share price is on the rise today appeared first on The Motley Fool Australia.