How Evolution’s New Triple Flag Deal Unlocks Northparkes’ Gold Future
Evolution Mining has secured a significant capital injection and reduced streaming rates in a revamped agreement with Triple Flag, paving the way for development of the gold-rich E44 deposit at Northparkes.
- A$120 million refundable deposit from Triple Flag due December 2026
- Streaming rates on E44 gold deposit cut from 67.5% to 25% for gold
- Binding minimum delivery obligation of gold and silver from FY31 to FY38
- Pathway opened for development of other gold-rich deposits at Northparkes
- Feasibility study update underway to meet Final Investment Decision by end 2029
Evolution and Triple Flag Forge New Path at Northparkes
Evolution Mining Limited (ASX, EVN) has announced a pivotal amendment to its metal purchase and sale agreement with Triple Flag International Ltd, a subsidiary of Triple Flag Precious Metals Corp. This refreshed deal not only injects a substantial upfront capital contribution of A$120 million but also significantly alters the streaming terms on the gold-rich E44 deposit at Northparkes, a key asset in Evolution’s portfolio.
The original agreement, inherited from the CMOC Group before Evolution’s acquisition of Northparkes, has been restructured to better align incentives and unlock latent value. Notably, the streaming rate on gold from the E44 deposit has been slashed from 67.5% to 25%, while silver streaming has been reduced from 100% to 37.5%. This adjustment enhances Evolution’s share of the precious metals produced, improving project economics and potentially boosting future cash flows.
Unlocking Development Potential with Financial Flexibility
The agreement includes a refundable deposit payable by Triple Flag in December 2026, timed to coincide with the development phase of the E22 block cave, another significant project at Northparkes. This capital injection provides Evolution with financial flexibility to advance exploration and development activities without immediate dilution or debt.
In exchange, Evolution commits to a binding minimum delivery of 45,000 ounces of payable gold and 446,000 ounces of payable silver between fiscal years 2031 and 2038. Should Evolution decide against proceeding with the E44 development by the end of 2029, it may repay the deposit plus compensation, terminating the minimum delivery obligation but maintaining streaming terms on any actual production.
Strategic Implications and Future Growth
Beyond the immediate terms, the agreement opens the door for potential development of other gold-rich deposits within the Northparkes tenement package. Both Evolution and Triple Flag have agreed to explore mutually beneficial ways to unlock further value, signalling a collaborative approach to future growth.
To meet the critical Final Investment Decision deadline for E44 by December 2029, Evolution has greenlit a comprehensive study to update the prior feasibility work. This move underscores the company’s commitment to advancing the project and capitalising on the favourable gold price environment.
Evolution’s Managing Director Lawrie Conway highlighted the milestone nature of the agreement, emphasising the alignment with Triple Flag and the shared vision to maximise Northparkes’ potential. Triple Flag’s CEO Sheldon Vanderkooy echoed this optimism, noting the immense gold potential of the land package and the value creation for shareholders on both sides.
Bottom Line?
This agreement marks a strategic pivot for Northparkes, setting the stage for expanded gold production and enhanced shareholder value over the next decade.
Questions in the middle?
- Will Evolution proceed with the E44 development or opt to repay the refundable deposit by 2029?
- How will evolving gold and silver prices impact the economics of the amended streaming agreement?
- What other gold-rich deposits within Northparkes might come into focus following this deal?
