Barrick Mining Corporation (NYSE:B, TSX:ABX) announced that has finalized an agreement to sell the Hemlo Gold Mine to Carcetti Capital Corp. for gross proceeds of up to US$1.09B. Carcetti Capital will then be renamed to Hemlo Mining Corp. (HMC).
The terms of the agreement consist of cash consideration of US$875M, which is due upon closing. Barrick will receive HMC shares with an aggregate value of US$50M, which is based on the same price per HMC subscription receipt under the concurrent equity offering announced by HMC, to be issued by HCM to Barrick upon closing. Finally, Barrick will also receive a production and tiered gold price-linked cash payment structure of up to US$165M for five years, starting in January 2027.
Mark Bristow, President and Chief Executive of Barrick commented, “The sale of Hemlo at an attractive valuation marks the close of Barrick’s long and successful chapter at the mine and underscores our disciplined focus on building value through our Tier One gold and copper portfolio.”
“We are confident that HMC’s experienced management and the existing Hemlo team will be excellent stewards of the asset, unlock its future potential and continue to deliver benefits for all stakeholders. Together with the sales of Donlin and Alturas, total gross proceeds from the divestment of non-core assets this year are expected to generate over $2 billion.”
Hemlo was Barrick’s only operating gold mine in Canada, but the company has a number of prospective early-stage projects as well as exploration targets in-country. They stress that Canada will remain an important jurisdiction for the company moving forward.
