The agreement signed between West Red Lake Gold Mines Ltd. and Evolution Mining Ltd. will allow the former to raise its ownership of the Rowan Property from 72% to 100% by buying the remaining 28% interest from Evolution.
Of the 3,100-hectare West Red Lake Gold Project, which consists of three sites (Mount Jamie, Red Summit, and Rowan), The Rowan Property is the most advanced development. The Red Lake gold complex of Evolution is bordered by the Rowan Property, which is situated north of Red Lake.
This is a significant milestone for West Red Lake Gold Mines, as we have now acquired 100% ownership of all three properties that comprise the West Red Lake Gold Project, and we have successfully welcomed the top operator in the Red Lake Gold District as a strategic shareholder. We are excited to begin an active and productive 2023 exploration season, with a strong focus on building momentum and creating value for our shareholders.
Tom Meredith, Chief Executive Officer, West Red Lake Gold Mines Ltd.
In 2020, Evolution purchased the Red Lake gold complex from Newmont. This covers mining development initiatives in addition to the well-known Campbell, Red Lake, and Cochenour mines.
As new resources were discovered, Evolution paid an extra US $100 million on top of its initial $375 million payment. For CAD 343 million, they also acquired the nearby Battle North Gold property holdings in 2021.
The Red Lake operation, which currently has a significant 12.3-million-ounce gold mineral resource, is being optimized as part of Evolution’s commitment to being a top gold producer in North America.
A National Instrument 43-101 inferred mineral resource of 2,790,700 tons at an average grade of 9.2 g/ton Au, including 827,462 ounces of gold with a cut-off grade of 3.8 g/ton Au, is currently existing on West Red Lake Gold’s Rowan Property.
The inferred resource is found within a 1.8 km strike length section of the regional scale Pipestone Bay St. Paul Deformation Zone, close to the historic underground Rowan Mine site.
A total of 3,645,000 common shares of WRLG are being provided to Evolution as consideration for the acquisition, which amounts to CAD 250,000. Evolution will retain a 2.5% NSR.
A total of 182,250 common shares will be distributed by WRLG to selected third parties as a success fee in connection with the acquisition. Upon closure, Evolution will own 6.53% of West Red Lake Gold.
The approval of the TSX Venture Exchange is one of the customary requirements for the acquisition and success fee.