Luxembourg, May 26, 2015 – La Mancha, a Luxembourg-based gold producer, is pleased to announce that it has agreed to contribute A$112 million of capital towards the acquisition by Evolution Mining (ASX:EVN) (“Evolution”) of the Cowal Gold Mine (“Cowal”) from Barrick Gold Corporation (NYSE:ABX, TSX:ABX) (“Barrick”).
This transaction follows on from the announcement in April 2015 that La Mancha would be combining its Australian operations with Evolution, and its intention to support further growth by the merged entity.
Yesterday in Australia, Evolution announced the acquisition of Cowal from Barrick for US$550 million. In order to underpin Evolution’s financing for the transaction, La Mancha has agreed to contribute A$112 million of additional equity towards the transaction and maintain its 31% shareholding in the combined entity.
Following completion of the merger and the acquisition of Cowal, La Mancha will be the major shareholder in the second largest Australian gold producer, with combined current annual production of 760,000 – 860,000 ounces. For more information on Cowal or the transaction please refer to the Evolution press release and presentation dated May 25th 2015, available at www.evolutionmining.com.au.
Sebastien de Montessus, CEO of the La Mancha Group, stated:
“Over the recent weeks, we have closely worked with Evolution to successfully conclude this major transformational deal that achieves our shared vision of creating one of the largest Australian gold producers.
We believe that Evolution’s newfound ability to successfully bid on world-class assets, in a time-efficient manner, clearly demonstrates the benefit of having a well-funded strategic partner such as La Mancha. This new equity contribution not only confirms the commitment we made to support Evolution’s future growth but also reconfirms the confidence we have in Jake Klein (Executive Chairman of Evolution) and his team to successfully integrate and manage these new assets while continuing to expand our footprint in Australia.
Following our Australian achievements, I believe that we are well positioned to repeat this success in Africa where we continue to see significant value accretive opportunities.”
About La Mancha Group
La Mancha is a privately held international gold producer with operations in Australia, Côte d’Ivoire and Sudan. In addition to the La Mancha Australia operations, La Mancha also operates the Ity gold mine in Côte d’Ivoire (55% interest) and has recently sold its Hassaï open pit mine in Sudan (44% interest). La Mancha was privatised in 2012 by the Sawiris family, a prominent Egyptian family. Through the Orascom Group, the Sawiris family is active across various sectors and businesses, ranging from construction and fertilisers to real state and telecommunications in addition to resources. Under the Sawiris family ownership, La Mancha has expanded its operations in each key jurisdiction and is on track to achieve the group’s target of +500,000 gold equivalent ounces of attributable production. For more information, please visit www.lamancha.com.
For additional information, please contact:
La Mancha Group
Executive Vice-President, Head of Strategy & Business Development
Tél: (33) 01 70 38 36 96