Evolution considering Pajingo gold divestment

Evolution Mining is considering the divestment of its Pajingo gold mine, after receiving approaches for the asset.

“Evolution has consistently stated that a key object of its business strategy is to improve the quality of its asset portfolio over time,” the company said in an official statement.

“This includes continuously evaluating a wide range of acquisition and divestment opportunities that Evolution believes are in the best interests of shareholders.

“A sale of Pajingo gold mine would be consistent with this strategy.”

While the miner has not put a valuation on any sale, it did state “if Evolution were to proceed with the sale of the asset it would result in a loss on the sale in the order of approximately $70 to $80 million based on the current carrying value of the asset”.

“IF Evolution does not proceed with the sale it would instead write down the carrying value of the asset by a similar amount in its 2016 financial accounts.”

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