Gold Corp Red Lake
Evolution Mining Limited has announced plans to purchase the Red Lake Gold complex.
The Australian based company has entered an agreement with Newmont Goldcorp to acquire the mine.
The transaction is worth $375-million.
The deal includes another 100-million payable upon new resource discovery.
Evolution has unveiled a three-year “turnaround” plan to improve the quality of the gold mine by reducing operating costs, increasing production, and extending mine life.
Evolution has also committed to invest $100-million on existing operations and an additional $50-million in exploration in Red Lake over the first three-years following completion of the transaction.
The company calls Red Lake an under-capitalized asset, which it intends to make a cornerstone in its portfolio.
Officials add it provides significant upside potential for Evolution.
Evolution Executive Chair Jake Klein says “The camp has significant exploration potential which, coupled with its relatively unexplored recent past, provides significant upside potential for Evolution to extend the longevity of the operation beyond its current 13-year life of mine plan.”
Klein adds “We are confident that Evolution will be an excellent and committed steward of Red Lake and look forward to continuing Newmont Goldcorp’s track record of safe and sustainable operation for the long-term benefit of a broad range of stakeholders including the local workforce, regional communities and the Lac Seul and Wabauskang First Nations Groups.”
The deal is expected to be completed around the end of March 2020.
