Australian miner invests in Canadian gold mining operations

Photo: Evolution Mining

Australia's Evolution Mining has annouced it will purchase Canadian gold mining complex Red Lake from Newmont Goldcorp Corp under a deal worth US$375 million.

 

Red Lake is an underground gold mining complex in western Ontario, Canada.

 

"The operation comprises the Red Lake and Campbell complexes, each consisting of an underground mine and associated processing facility, and the Cochenour mine. In the 2018 calendar year, the mine produced 276,000 ounces of gold at an All-in Sustaining Cost of US$988 per ounce," Evolution Mining said in a filing to the Australian Securities Exchange (ASX).

 

This year, Red Lake is forecast to produce 150,000 – 160,000 oz of gold, according to data released by Evolution Mining.

 

In addition to the $375 million in cash, the Australian miner has has agreed to pay Newmont Goldcorp up to an additional $100 million payable upon new resource discovery, the statement said.