Red Lake is an underground gold mining operation in western Ontario, Canada. Its mines produced 276,000 ounces of gold in the 2018 calendar year.
Evolution’s acquisition, to be funded through a $600 million loan facility, adds to the company’s five wholly owned gold mines in Australia at Cracow, Mount Carlton and Mount Rawdon in Queensland, Cowal in New South Wales, and Mangari in Western Australia.
Mr Klein said Evolution had identified a range of opportunities to deliver an “operational turnaround” of the Red Lake complex. The company has committed to invest $US100 million on existing operations and a further US$50 million in exploration at Red Lake over the first three-year period following the finalisation of the sale.
The deal is the latest in a recent run of Australian gold miners buying up assets in Canada. Most recently, Newcrest acquired a 70 per cent stake in Imperial Metals’ Red Chris mine in Canada’s British Columbia and St Barbara acquired Atlantic Gold in Nova Scotia.
Tom Palmer, Newmont Goldcorp’s president and chief executive, said Evolution was a “highly respected and responsible producer”, which was committed to the success of Red Lake” and would prove a “great partner” for Red Lake’s surrounding communities and stakeholders.