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La Mancha sells Evolution Mining shares

La Mancha has banked another A$140 million from the sale of Evolution Mining shares, taking net proceeds thus far to nearly $600 million since it sold its assets in Western Australia to the ASX-listed gold miner mid-decade.
La Mancha sells Evolution Mining shares La Mancha sells Evolution Mining shares La Mancha sells Evolution Mining shares La Mancha sells Evolution Mining shares La Mancha sells Evolution Mining shares

The Mungari gold mine in Western Australia

Staff reporter

The latest sale, which was reported last week as involving a call spread option that La Mancha said allowed it to "remain exposed to the significant upside potential we see in (Evolution)", adds to the nearly $600 million worth of shares it sold last year.

Prior to the sales La Mancha spent a combined circa $170 million on two fundraisings undertaken by Evolution.

La Mancha originally received 322 million Evolution shares for its Australian assets in 2015.

At the time the assets included the high-grade Frog's Leg underground gold mine, the adjacent White Foil open-pit gold mine and the new 1.5Mtpa Mungari CIL processing plant - all located in close proximity to Kalgoorlie - with combined annual production in the range of 130,000-160,000 ounces of gold at an all-in sustaining cost of $950-1000/oz.

At current pricing La Mancha retains about $500 million worth of shares, with the 130 million shares held equating to a 7.6% stake.

Thus, as it stands today, the value of the deal for the Australian assets notionally totalled about $1.1 billion.

La Mancha is a business owned by the Sawiris Family.

Evolution shares were at $3.96 today having been at levels around 80c at the start of 2015.