Evolution Mining enters northwest gold camp with plans to boost production, lower operating costs, spend like mad on exploration
Evolution Mining, a leading Australian gold producer, is making a big-splash entry into Canada by acquiring the Red Lake Gold Complex from Newmont Goldcorp in a cash deal worth US$475 million. The Sydney and Perth-headquartered gold miner made the announcement on Nov. 26, Australian time.
The news release included details of a three-year “turnaround” plan to “reinvigorate” the northwestern Ontario gold camp by reducing operating costs, increasing production, and extending mine life.
According to the terms of the transaction, Evolution will pay Newmont Goldcorp US$375 million at close, plus an additional US$100 million contingent on a new resource discovery.
Evolution expects the deal to be finalized by next March. Newmont merged with Goldcorp and its mines in Timmins, Red Lake and at Musselwhite last April in a $10-billion deal. By September, they were taking offers for the Red Lake Complex.
Evolution called Red Lake an underfunded asset and is committed to spending US$100 million on the current underground mines, plus spend US$50 million in exploration to find new ones.
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