Monsters of Rock: Evolution completes $400m placement, South32 secures smelter energy supply
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The ASX Materials Index nudged lower Friday for a less-than-stellar five-day performance of -1.15%.
Today’s large cap losers column was led by gold producer Northern Star Resources (ASX:NST), which fell 6%.
Evolution successfully completed a A$400 million placement to fund the acquisition of the Kundana operations from Northern Star Resources (ASX:NST).
This includes a 51% interest in the East Kundana Joint Venture, 100% interest in certain tenements comprising the Carbine Project and a 75% interest in the West Kundana Joint Venture.
The transaction is unconditional and is expected to be completed in late August.
“We are delighted with the level of support from shareholders for the Institutional placement, reflecting their endorsement of this pivotal transaction that will transform Mungari to establish the operation as the fourth cornerstone asset in the Evolution portfolio,” executive chairman Jake Klein said.
The company plans an SPP now to raise up to A$50 million for ‘general corporate purposes.’
The company jumped 0.7% after finalising the energy supply for its Hillside aluminium smelter in South Africa.
Hillside has been a major Eskom customer for 25 years and this basically secures supply for another 10 years, under a tariff that’s South African rand-based with a rate of escalation linked to the South Africa producer price index – as opposed to the previous contract based on US dollars and linked to the aluminium price on the LME.
Eskom retains the current flexibility to interrupt smelter supply to support the management of the national electricity grid and minimise load shedding.
As the world transitions to a low carbon future, we will work with Government, Eskom and other potential partners to explore options to secure a green energy solution for Hillside,” CEO Graham Kerr said.