Aug 23 (Reuters) - Evolution Mining Ltd EVN.AX :
* Acquisition of economic interest in Ernest Henry and AREO EVN.AX
* Deal for A$880 million
* Says Evolution has entered into a strategic alliance with Glencore (LON:GLEN) in respect
of potential future regional acquisitions
* Transaction reduces Evolution Group FY 2017 AISC guidance from A$1,000/oz to
A$930/oz
* Unit entered into transaction with Glencore PLC to acquire economic interest
in Glencore's Ernest Henry operation
* Says acquisition expected to be earnings, cash flow and value accretive
* Transaction is expected to deliver Evolution gold production at extremely low
AISC
* Reduces Evolution Group FY 2017 AISC guidance from A$1,000/oz to A$930/oz
* Intends to raise A$401 million through underwritten pro-rata accelerated
renounceable entitlement offer to partly fund the transaction
* Offer price represents 13.4% discount to theoretical ex rights price based on
adjusted last closing price of Evolution on 23 August 2016
* Offer at a price of A$2.05 per new share
* Revised FY 2017 group production guidance of 800,000 - 860,000oz at an AISC
of A$900 - A$960/oz
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