Barrick Mining (TSX: ABX) has entered into an arrangement to sell the Hemlo Gold Mine in Ontario. The deal will see the iconic Canadian mine sold to Carcetti Capital Corp (TSXV: CART.h), which will be renamed to Hemlo Mining Corp upon closing of the transaction.
Carcetti Capital is to be helmed by Jason Kosec, the former president and CEO of Millennial Precious Metals Corp. Jonathan Awde, co-founder and former CEO of Dakota Gold and Gold Standard Ventures will serve as Chairman, while former SSR Mining CEO and Pretium Resources founder Robert Quartermain will sit on the board of directors, alongside former Minera S.A. CEO Audra Walsh, Glenn Kumoi, and Jon Case.
The transaction will see Carcetti acquire the mine for a total purchase price of $1.09 billion, with consideration to include $875 million in cash upon closing, 34.6 million Hecla Mining shares worth $50 million, and contingent consideration of $165 million based on production and tiered gold price-links for a five year period.
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The purchase is to said to be fully funded, with Wheaton Precious Metals (TSX: WPM) providing $400 million in exchange for a gold stream that will see Hecla deliver 13.5% of the production from Hemlo until 181,000 ounces have been delivered. After that milestone, the stream will drop to 9.0% until a further 157,330 ounces have been delivered, after which the stream will step down to 6%. Wheaton in exchange will pay 20% of the spot price at the time of delivery for those gold ounces.
A further $225 million is to be funded via senior credit facilities with the Bank of Nova Scotia, consisting of a $200 million term loan with a three year term bearing interest at SOFR + 2.75% to 3.75% based on leverage ratios, and a $25 million revolving credit facility. While a final C$575 million is to be raised via the sale of 287.5 million shares at a price of C$2.00 each under a bought deal led by Scotiabank. which is expected to close October 1, 2025.
Commitments under that private placement currently include $50 million from Wheaton Precious Metals and $100 million from Orion Mine Finance, while directors and officers have committed to purchase $10 million in shares under the offering.
The Hemlo Mine is a long life, low cost operation that is expected to see average annual production of 154.000 ounces of gold at all in sustaining costs of $1,541 over a 14 year mine life. An independent technical report conducted on Hemlo in relation to the transaction supported the results of a pre-feasibility study for the project, which highlights an after tax NPV of $1.1 billion based on that mine life and production profile. Probable reserves meanwhile amount to 2.3 million ounces at grades of 1.75 g/t gold, alongside measured and indicated resources of 3.6 million ounces at 1.58 g/t gold and inferred resources of 0.6 million ounces at 1.98 g/t gold.
The transaction is currently expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.
Barrick Mining last traded at $40.92 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
