Barrick closes Hemlo sale for $1.09-billion (U.S.)

Executive Summary

• Barrick Mining Corp. has completed the divestiture of its Hemlo gold mine in Canada to Carcetti Capital Corp. (to be renamed Hemlo Mining Corp.).
• The total transaction consideration is valued at up to $1.09 billion, structured across immediate cash, equity, and future production-linked payments.
• The deal includes a significant deferred payment component tied to gold production and price, starting in January 2027.

Key Details

• Transaction Structure: Divestiture of the Hemlo gold mine.
• Buyer: Carcetti Capital Corp. (renaming to Hemlo Mining Corp.).
• Total Consideration: Up to $1.09 billion (USD).
• Closing Payments:
  • $875 million in cash received on closing.
  • $50 million in Hemlo Mining Corp. (HMC) shares received on closing.
• Deferred/Contingent Payments:
  • Production and tiered gold-price-linked cash payment structure.
  • Maximum value of up to $165 million.
  • Payment term: Five years, starting in January 2027.
• Acknowledgments: Barrick thanked the Biigtigong Nishnaabeg and Netmizaaggamig Nishnaabeg First Nations for their cooperation and support.

Notable Quotes

• "The company would like to thank the Biigtigong Nishnaabeg and the Netmizaaggamig Nishnaabeg first nations for their co-operation and support related to the operation of Hemlo."