Barrick Mining has signed an agreement to sell the Hemlo Gold Mine in Canada to Carcetti Capital Corporation for up to $1.09bn (C$1.51bn).
The divestment is part of Barrick’s strategy to strengthen its balance sheet and enhance shareholder returns.
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Carcetti Capital Corporation will be renamed Hemlo Mining Corporation (HMC) upon completion of the transaction.
The sale agreement comprises a cash consideration of $875m due upon closing, and HMC shares valued at $50m to be issued to Barrick at the same price per HMC subscription receipt under HMC’s concurrent equity offering.
Additionally, a cash payment arrangement linked to production and a tiered gold price, amounting to a maximum of $165m, will commence in January 2027 and be in effect for a duration of five years.
Barrick president and CEO Mark Bristow said: “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.
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By GlobalData“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 $2bn.”
Carcetti Capital has secured a financing deal worth a minimum of $1bn to cover the initial cash payment of $875m and the working capital needs at the time of completing the acquisition.
This financial package includes a $400m contribution via a gold streaming agreement with Wheaton Precious Metals and a $225m senior secured credit arrangement fully underwritten by the Bank of Nova Scotia.
The credit is split into a $200m term loan for the acquisition and a $25m revolving credit line for working capital purposes.
Additionally, the company will receive $415m through a private placement offering of subscription receipts, structured as a bought deal.
HMC incoming president and CEO Jason Kosec said: “The acquisition of Hemlo establishes the foundation for the next leading mid-tier Canadian growth-focused gold producer.
“Our business objective is clear: to maximise the value of Hemlo’s existing infrastructure through a fit-for-purpose operating approach, while unlocking new opportunities through an aggressive brownfields exploration strategy.”
HMC, currently listed on the NEX Board of the TSX Venture Exchange, anticipates graduating to the TSXV as it acquires Hemlo.
The completion of the sale is subject to customary closing conditions and obtaining necessary regulatory approvals, with expectations to finalise the deal in the fourth quarter of 2025 (Q4 2025).
CIBC World Markets is serving as Barrick’s financial advisor, while Davies Ward Phillips & Vineberg and Blake, Cassels & Graydon are providing legal counsel.
