Evolution Mining has snared the West Australian gold assets of an Egyptian billionaire and picked up a $100 million cash injection to put towards future acquisitions.
Naguib Sawiris' private company La Mancha Resources sold its two gold mines and a processing plant near Kalgoorlie to Evolution in a deal that gives it a 31 per cent stake in the local miner.
La Mancha will be issued with 322 million Evolution shares and become the Australian miner's largest shareholder.
It has agreed to provide Evolution with a $100 million cash injection and work with the miner to help it expand and become a mid-tier global player.
"The La Mancha Australia assets are an excellent addition to our existing portfolio, and exactly the type of high-quality, low-cost producing assets that we have been seeking to acquire," Evolution's chief executive Jake Klein said.
"They are also located in a highly prospective and strategically important region of Australia that offers significant upside exploration potential."
Evolution revealed in March that it was in talks with La Mancha about its Australian assets - the Frog's Leg and White Foil gold mines, the Mungari CIL processing plant, and a 340kmsq exploration portfolio.
Mr Sawiris, whose business interests are more geared towards telecommunications in the Middle East, paid nearly $500 million for La Mancha's gold assets in 2012.
La Mancha chief executive Sebastien de Montessus said his company would act as a long-term strategic partner to Evolution and provide $100 million to help it find value-accretive growth opportunities.
La Mancha will also have the right to nominate two representatives to Evolution's board.
The combined production of the La Mancha mines is 130,000 to 160,000 ounces of gold a year.
Evolution estimates that with the La Mancha assets it will be able to produce between 530,000 and 600,000 ounces of gold from six operations spread across Queensland and WA.
For the March quarter, Evolution produced 103,305 ounces of gold, in line with its forecasts.
It estimates it will produce between 400,000 and 440,000 ounces of gold equivalent this financial year.
Evolution shareholders will vote on the La Mancha deal at an extraordinary general meeting in July.
Evolution's shares were 1.75 cents lower at 91.25 cents at 1211 AEST.
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