Barrick Announces Sale of Hemlo for Up To $1.09 Billion
Executive Summary
- Barrick Mining Corp. entered into a definitive agreement to sell the Hemlo Gold Mine in Canada to Carcetti Capital Corp., which will be renamed Hemlo Mining Corp. (HMC) at closing.
- The transaction provides up to $1.09 billion in gross proceeds: $875 M cash, $50 M of HMC shares, and a contingent production‑linked cash payment of up to $165 M payable over five years beginning Jan 2027.
- Proceeds will be used to strengthen Barrick’s balance sheet and support its capital allocation framework; the deal is expected to close in Q4 2025 pending customary conditions.
Key Details
- Purchase Price Composition
- Cash consideration: $875 million, payable at closing.
- Equity consideration: HMC shares valued at $50 million (based on the same price per HMC subscription receipt as in HMC’s concurrent equity offering).
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Contingent cash payments: Up to $165 million tied to Hemlo production and gold‑price thresholds, payable over a five‑year term starting Jan 2027.
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Contingent Payment Mechanics (per Endnote 1)
- 20.0% of incremental revenue if gold price > $3,300/oz but < $3,500/oz.
- 22.5% of incremental revenue if gold price > $3,500/oz but < $3,700/oz.
- 25.0% of incremental revenue if gold price > $3,700/oz.
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Payments capped at $165 million total over the five‑year period.
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Buyer Profile – Hemlo Mining Corp. (HMC)
- Currently listed on the NEX Board of the TSX Venture Exchange; intends to graduate to the TSXV upon acquisition.
- Management includes Robert Quartermain (former CEO of SSR Mining and founder of Pretium Resources) with extensive Canadian mining experience.
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Backed by a consortium including Wheaton Precious Metals and Orion Mine Finance Management.
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Use of Proceeds
- Strengthen Barrick’s balance sheet.
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Support Barrick’s commitment to return capital to shareholders under its capital allocation framework.
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Strategic Context
- Sale marks the end of Barrick’s “long and successful chapter” at Hemlo, allowing focus on Tier‑One gold and copper assets.
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Combined with sales of Donlin and Alturas, total expected gross proceeds from non‑core asset divestitures this year exceed $2 billion.
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Closing Timeline & Conditions
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Expected to close in the fourth quarter of 2025, subject to customary closing conditions and required regulatory approvals.
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Advisors
- Financial advisor: CIBC World Markets Inc. (to Barrick).
- Legal counsel: Davies Ward Phillips & Vineberg LLP and Blake, Cassels & Graydon LLP (to Barrick).
Notable Quotes
“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,” – Mark Bristow, President & CEO, Barrick.
“We are confident that HMC’s experienced management and the existing Hemlo team will be excellent stewards of the asset… 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,” – Mark Bristow, President & CEO, Barrick.