NEM - Evolution Mining's Red Lake Mine Acquisition - A Bet On Exploration Success

Evolution Mining (CAHPF) decided to purchase the Red Lake mine from Newmont Goldcorp (NEM). Evolution, one of the biggest Australian gold producers, will pay $375 million to acquire the Canadian mine. Up to further $100 million could be paid in contingency payments, if further resources are discovered. Evolution will pay $20 million for each million newly discovered toz gold (or $20/toz). However, the contingency payments are capped at $100 million. In other words, any discoveries above 5 million toz gold are for free.

Given the reputation of Red Lake, where the

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