Evolution to buy Canadian gold mine

Evolution Mining has agreed to buy Canadian gold mining complex Red Lake from Newmont Goldcorp Corporation for $US375 million ($A553 million) in cash.

Evolution also agreed to pay an additional $US100 million upon new resource discovery at the mine in western Ontario.

The acquisition will be funded through an $A600 million loan facility, the company said in a statement to the ASX on Tuesday.

Evolution executive chairman Jacob Klein said the company has been looking at assets in Canada since 2017.

"We believe it is a country with low geopolitical risk, high geological prospectivity and a strong mining culture," Mr Klein said.

"Red Lake is an under-capitalised asset which, through a committed investment in development and exploration, is intended to become a cornerstone asset in the Evolution portfolio."

Shares in Evolution Mining were up 1.97 per cent to trade at $3.88 per share, as at 12:20pm AEDT.