Australia-based gold mining company, Evolution Mining has completed the acquisition of Red Lake gold mine in Canada from Newmont for $375m.

The transaction follows an agreement signed by Evolution to acquire the gold mine in November last year.

Red Lake, which is located in Ontario, Canada, is high grade, long life underground gold mining complex that comprises Red Lake and Campbell complexes.

The mine currently has a mine life of about 13-year and provides exploration potential in Archean greenstone gold geology familiar to Evolution.

The gold mining company is planning to recapitalise the asset and reduce the cost base of the operation.

It has also committed to a significant investment in capital development and exploration for the next three years.

Evolution secured five-year term loan of $349.9m from six banks

Evolution executive chairman Jake Klein said: “We commenced our search for an operation in Canada in 2017. Following an extensive review and several detailed due diligences, we identified Red Lake as an ideal, deep value opportunity.

“The driver for our interest was both the outstanding potential for the discovery of new, high grade mineralisation and clear turnaround opportunity to restore it to being a safe, efficient, long life, low cost operation.”

For the transaction, Evolution has secured a five-year term loan of A$570m ($349.9m) from a syndicate of six banks.

The Australian firm intends to accelerate the Red Lake underground development to over 1,000m per month which is a 50% increase to the monthly average of 668m achieved in the December last year half-year.

Furthermore, the firm is planning to focus on large, high productivity zones in Lower Red Lake and Cochenour.