Evolution Mining shares drop as it faces class action
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The news: Law firm Echo Law has filed class action proceedings against Evolution Mining in the Federal Court of Australia, sending the gold miner’s shares lower.
The numbers: The class action alleges misleading conduct between July 2021 and June 2022 relating to statements regarding Red Lake operations. The amount of damages sought has not yet been specified by the applicant, Evolution said in a statement late on Thursday.
Shares in the company were down 4% to $5.03 in early trading on the ASX.
The context: Evolution acquired the Red Lake gold mining complex in Canada from bigger rival Newmont in 2019, but the project has since faced a number of problems including materials handling constraints and a seismic-related restriction.
The class action lawsuit alleges failure to comply with disclosure obligations and misleading and deceptive conduct. Evolution said it intends to vigorously defend the proceedings.
The source: ASX announcement
