Evolution Strikes Deal With Glencore to Buy Output from Australian Mine

   By Rhiannon Hoyle

SYDNEY--Glencore PLC (GLEN.LN) has struck a deal with Australian gold miner Evolution Mining Ltd. (EVN.AU) worth 880 million Australian dollars (US$670 million) that will entitle Evolution to all of the gold production and some of the silver and copper output from one of its Australian mines.

Evolution has agreed to buy a 30% economic stake in the Ernest Henry mine in northwest Queensland state that will entitle it to 30% of future copper and silver output, and 100% of future gold production, from an agreed area around the mine, the companies said in separate statements.

Evolution said it intends to raise roughly A$401 million through an accelerated renounceable entitlement offer to partly fund the purchase.

Glencore said the deal is part of its plan to reduce its debt pile.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

August 23, 2016 19:23 ET (23:23 GMT)

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