The acquisition comes only a month after Evolution inked a deal to merge with La Mancha Australia, but the company had thought to be in the hunt for Cowal, which was put on the market earlier this year.

Barrick said the sale completed the closure of its Australian headquarters in Perth and the proceeds would be used to pay down debt.

Klein said he was “surprised and delighted” to be able to announce the acquisition of such a coveted asset so soon after the La Mancha deal and described it as “truly transformational”

“This is the high quality asset we’ve been looking for to cornerstone our business,” he said.

“This puts Evolution on the map.”

It comes after a competitive process thought to have involved miners like Gold Fields, Zijin Mining and Independence Group.

Cowal produces around 230,000-260,000 ounces of gold per annum at all-in sustaining costs of $A850-900 an ounce.

The Cowal and La Mancha deals will take Evolution’s production to 760,000-860,000oz at AISC of $950-1020/oz, or $US750-810/oz.

Klein said Evolution’s margins would be more than $A550/oz produced.

“We can now claim to be more than globally competitive,” Klein said.

“We’ve become a globally relevant mid-tier gold producer.”

In what he described as a “fascinating time” for the local gold sector, Klein said a core group of three or four Australian gold producers had the opportunity to move into the global mid-tier.

“Evolution is now one of them,” he said.

Evolution will fund the transaction via a five-for-13 fully underwritten accelerated renounceable entitlement offer to raise $248 million.

The issue price of 90c per share represents an 18% discount to Evolution’s last trading price.

La Mancha Resources will subscribe for an additional $112 million of equity to maintain its proposed 31% stake once the deals are completed.

Evolution has also refinanced its credit facilities, securing an upsized three-year $300 million senior secured revolver, and a new five-year $400 million senior secured term loan.

Klein said the company still had the capacity to pursue further growth, but any additional M&A activity would be disciplined.

“Cowal now sets the benchmark very high,” he said.

Klein added that Evolution had no particular targeted production figure in mind.

Evolution shares will remain in a trading halt while the capital raising is conducted.