Evolution Mining has agreed to sell its Edna May gold mine in Western Australia to Ramelius Resources for up to $90 million.
The smaller miner will pay Evolution $40 million in cash and as much as $50 million in royalties, cash or shares later on if certain conditions are met.
Evolution revised its full-year production guidance from 820,000 to 880,000 ounces to between 750,000 and 805,000 ounces to recognise the sale.
"Evolution has grown significantly in recent years and Edna May is no longer a core asset of the company," Evolution executive chairman Jake Klein said.
"In line with improving the quality of the portfolio, the decision to sell Edna May will lower our all-in sustaining cost."
Evolution lowered its cost guidance to an all-in sustaining cost of $820 to $870 per ounce for FY18, from $850 to $900 per ounce.
Edna May had a 2016/17 earnings margin of 18 per cent against an average of 49 per cent across Evolution's total portfolio.
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