Australian gold mining company Evolution Mining has closed the acquisition of an 80% stake in the Northparkes copper-gold mine near Parkes, New South Wales (NSW), from CMOC.

As per the deal, which was announced earlier this month, Evolution agreed to pay $400m (A$594.72m) upfront and the balance of $75m on a contingent basis to acquire the stake from CMOC’s Australian subsidiary, CMOC Mining.

Sumitomo Metal Mining and Sumitomo Corporation will retain the remaining 20% interest in the mine.

Of the total consideration, Evolution made a $399m payment to CMOC.

The payment has been funded from the recently completed A$525m fully underwritten institutional placement and a new $200m five-year-term loan, Evolution said.

Evolution Mining managing director and chief executive officer Lawrie Conway said: “We are delighted to have successfully completed the acquisition of an 80% interest in, and operatorship of Northparkes. This is another important step in our strategy of building a portfolio of long-life, high-margin assets and delivers us two long-life assets in Central West NSW.”

The sale forms part of CMOC’s efforts to pursue other strategic initiatives that are more aligned to its objectives.

Located 27km north-west of Parkes, in the central west of NSW, the Northparkes mine hosts multiple large-scale porphyry copper and gold deposits suitable for bulk cave mining operations.

Commissioned in 1994, the mine holds estimated ore reserves of 101.4 million tonnes of copper at 0.53%, 0.27 grams per tonne (g/t) gold and 1.87g/t silver, as of last year.

Conway earlier said: “Positioned in the Lachlan Fold Belt, one of Australia’s most prospective copper-gold belts, Northparkes has a long history of Ore Reserve replenishment and growth, increasing reserves by 49% since 1994, with a current ore reserve of 101 million tonnes.

“In addition, the asset is favourably located close to well-capitalised infrastructure, featuring concentrated mining options with five deposits situated within a two-kilometre radius.”