Hemlo Explorers Enters Earn-In Arrangement With Barrick Gold

Hemlo Explorers (TSXV: HMLO) has entered into a major agreement with that of Barrick Gold (TSX: ABX). The two firms this morning entered into a binding term sheet that will see Barrick obtain an earn-in right to a portion of the Pic Project.

The arrangement will see Barrick obtain the right to earn into 910 claims covering 16,800 hectares of the Pic Project, which is 25 kilometres to the west of Barrick’s Hemlo Mine. Under the terms of the arrangement, the company can earn up to an 80% stake in the claims by conducting a pre-feasibility study within the next six years.

The earn-in right is subject to the company spending $0.8 million on the property in the first year, and having at least $1.0 million in expenditures on each anniversary of the definitive agreement thereafter. The arrangement can be extended by up to two years with a $0.5 million payment to Hemlo for each year extended.

“Hemlo Explorers has moved its Pic Project to a point where it was ready to option to a major. We believe that we have the best possible partner to complete this program. We are excited to work with Barrick in bringing this project forward,” commented CEO Brian Howlett.

In consideration for the earn-in agreement, Barrick has agreed to invest in Hemlo the lesser of a 5% stake and $300,000 via a private placement of common shares into the company.

Finally, the company also indicated that it intends to continue exploration on the southwestern corner of the Pic Project, referred to as Project Idaho. The region is believed to be analogous to the geology at Generation Mining’s Marathon palladium-copper project to the west which is now under development.

Hemlo Explorers last traded at $0.22 on the TSX Venture.


FULL DISCLOSURE: Hemlo Explorers is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Hemlo Explorers on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Precious Metals: Canaccord Comments On Record Capital Returns From Producers

Recently, Canaccord put out a note titled, “Record return of capital and building cash.” Within,...

Tuesday, September 7, 2021, 04:47:00 PM

Hemlo Explorers Reaches Agreement With Biigtigong Nishnaabeg First Nation

Hemlo Explorers (TSXV: HMLO) continues apace with the development of its Hemlo Camp projects. The...

Wednesday, September 28, 2022, 09:58:42 AM

Barrick Q4 Earnings: Cash Flow Explodes

Well folks, another earnings season has begun and Barrick Gold (TSX: ABX) started it off...

Saturday, February 15, 2025, 02:33:00 PM

Tensions Mount at Barrick Gold Subsidiary in Tanzania

The North Mara gold mine in Tanzania, operated by a subsidiary of Barrick Gold Corporation...

Monday, January 6, 2025, 03:55:00 PM

Skeena Sees Barrick Exercise Warrants, Sell Out Of 12.9% Ownership Position Entirely

Barrick Gold (TSX: ABX) has apparently done a quick flip on shares of Skeena Resources...

Thursday, March 24, 2022, 08:36:45 AM