Barrick Mining Corporation has announced a significant divestment, agreeing to sell its Hemlo Gold Mine located in Ontario, Canada, for a transaction that could total as much as $1.09 billion. The prospective buyer, Carcetti Capital Corp., intends to rename itself Hemlo Mining Corp. upon finalizing the acquisition.
The deal involves an upfront cash payment of $875 million, as well as equity stakes in the acquiring company worth $50 million. Additionally, there are contingent payments tied to gold prices that could reach up to $165 million starting in 2027, contributing to the overall value of the transaction.
Currently, Carcetti Capital is listed on the NEX Board of the TSX Venture Exchange, with plans to transition to the main board following the completion of the acquisition. Hemlo Mining Corp. will be guided by an experienced management team spearheaded by Robert Quartermain, a veteran in the mining industry who has previously held leadership roles at SSR Mining Inc. and founded Pretium Resources Inc. Quartermain holds historical significance in relation to the Hemlo deposit, having been instrumental in its discovery during his time as a geologist at Teck Resources Limited.
The new venture boasts strong backing from prominent resource-focused investors, including Wheaton Precious Metals and Orion Mine Finance Management. Barrick has indicated that the proceeds from this sale will be reinvested to strengthen its balance sheet and support its ongoing strategy of returning capital to shareholders. This transaction fits within Barrick’s broader initiative to refine its asset portfolio, with total proceeds from recent asset disposals expected to exceed $2 billion this year.
Mark Bristow, Barrick’s president and CEO, remarked that the sale signifies the conclusion of a successful phase for the company at the Hemlo mine. He expressed optimism regarding the new operator’s capability to unlock the mine’s potential while ensuring continued benefits for local stakeholders.
The acquisition is projected to be finalized by the fourth quarter of 2025, contingent on the receipt of standard regulatory approvals. CIBC World Markets is acting as financial advisor for Barrick, while legal guidance is being provided by Davies Ward Phillips & Vineberg LLP and Blake, Cassels & Graydon LLP.
In the latest trading session, Barrick’s stock saw a decline of 0.61%, trading at $29.30 in premarket activity.
