RED LAKE, Ont. — After striking a deal to buy Newmont Goldcorp's Red Lake gold mining complex, an Australian mining company says it already has a plan to improve the efficiency of the operations.
Evolution Mining will pay US$375 million up front, with an additional payment of US$100 million upon new resource discovery.
It currently owns five gold mines in Australia.
In a statement, Evolution said it has committed to invest US$100 million on existing operations at Red Lake and an additional US$50 million in exploration over three years.
The company described the northwestern Ontario mine as a high-grade, long-life operation with "outstanding" exploration potential.
It has a current 13-year Life of Mine plan.
Evolution said Red Lake is an under-capitalised asset which it intends to develop into a cornerstone of its portfolio with a three-year "turnaround" plan, aimed at improving efficiency and production.
"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," the statement said.
