Gold miner Evolution Mining has announced its second acquisition in just over a month, acquiring the Cowal mine in central NSW for $US550 million ($A702.74 million).
Evolution is buying the mine, which produces 230,000 to 260,000 ounces of gold a year, from Canada's Barrick Gold.
The Australian miner describes the acquisition as "transformational", with Cowal one of the nation's most attractive gold assets.
"Very rarely does an opportunity arise to acquire a high-quality asset like Cowal," Evolution executive chairman Jake Klein said on Monday.
"This is an asset that has a long history of stable, large-scale, low-cost production. It is also an asset that we believe provides us with an attractive range of upside opportunities."
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The addition of Cowal and completion of the acquisition of La Mancha Australia, which Evolution announced on April 20, will lift Evolution's Australian asset portfolio to seven operations located in Queensland, Western Australia and NSW.
Once the La Mancha and Cowal deals are completed, Evolution expects to have a combined current annual production of 760,000 to 860,000 ounces a year.
Evolution sees opportunities to cut costs at Cowal, and revised calculations indicate the possibility of a material increase in reserves and mine life.
Cowal lies about 40km northeast of West Wyalong.
Gold is mined from a single open pit where conventional drill and blast, load and haul mining methods are used.
In addition to Cowal's operating assets, Evolution is acquiring a regional tenement package covering an area of about 683 square kilometres.
There are several existing identified exploration targets including E41, E46, South Cowal, and Regal and Galway Deeps.
Evolution plans to raise about $A248 million through a share offer, and $700 million in credit and loans to help fund the transaction.
Evolution shares are in a trading halt, having last traded at $1.175.
