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M&A / Property

Acquisition of Hemlo Gold Mine Launches a New Mid-Tier Canadian Gold Producer

By The Northwire Desk — AI Analysis Sep 10, 2025 · 19:46 HMMC · 0.82 Hemlo Mining Corp.
HMMC · Price

Executive Summary

  • Carcetti Capital Corp. has entered into a definitive agreement to acquire a 100% interest in the Hemlo Gold Mine from Barrick Mining Corporation for $875 million in cash, 34.6 million common shares, and up to $165 million in contingent cash payments based on gold price thresholds.
  • The transaction is fully funded by a $1.0 billion+ financing package comprising a $400 million gold stream with Wheaton Precious Metals, a $225 million senior secured credit facility from the Bank of Nova Scotia, and a $415 million bought deal private placement of Subscription Receipts.
  • Upon closing, Carcetti will amalgamate, change its name to Hemlo Mining Corp., and consolidate shares on a 1.5-for-1 basis. The acquisition is supported by a Pre-Feasibility Study indicating a 14-year mine life with average annual production of 154,000 ounces and an AISC of $1,541/oz.

Key Details

  • Transaction Consideration:
    • Upfront: $875 million cash and 34.6 million common shares.
    • Contingent: Up to $165 million in additional cash payments tied to gold price thresholds over a five-year term (Jan 1, 2027 – Dec 31, 2031).
    • Thresholds: 20% of incremental revenue at $3,300-$3,500/oz; 22.5% at $3,500-$3,700/oz; 25% at $3,700+/oz.
    • Excludes 50% of production from Interlake Claims (held by Franco-Nevada).
  • Financing Package (Total >$1.0 Billion):
    • Gold Stream: $400 million with Wheaton Precious Metals. Terms: 13.5% of Hemlo production (reducing to 9.0% after 181,000 oz, then 6.0% after further 157,330 oz); payment of 20% of spot price per ounce. Interlake stream percentage reduced by half.
    • Credit Facilities: $225 million total from Bank of Nova Scotia ($200M Term Loan, $25M Revolving Credit Facility). 3-year term. Interest at SOFR + 2.75%-3.75%. No principal payments for first 6 months post-closing; then 5% quarterly amortization.
    • Private Placement: Bought deal of 287,500,000 Subscription Receipts at C$2.00 (~$1.44 USD) per unit for gross proceeds of C$575 million (~$415 million USD). Each receipt converts to one common share upon release conditions (closing of transaction). 4-month hold period.
  • Technical & Operational Highlights (Pre-Feasibility Study):
    • Reserves: Probable mineral reserves of 2,321 koz contained gold (41.2 Mt at 1.75 g/t).
    • Resources: Measured & Indicated resources of 3,626 koz contained gold (71.3 Mt at 1.58 g/t); Inferred resources of 624 koz contained gold (9.8 Mt at 1.98 g/t).
    • Production Profile: Average annual gold production of 154,000 ounces over a 14-year mine life.
    • Costs: Average AISC of $1,541/oz over life of mine.
    • Valuation: After-tax NPV of $1.1 billion (5% discount rate, consensus gold prices); Life of mine undiscounted after-tax free cash flow of $1.49 billion.
  • Corporate Changes:
    • Company to be renamed Hemlo Mining Corp.
    • Share consolidation: 1 new share for every 1.5 pre-consolidation shares.
    • Expected closing: Q4 2025.
    • Trading halted on TSXV on Sept 10, 2025; no reinstatement until closing.
  • Leadership Appointments:
    • Jason Kosec: President, CEO & Director.
    • Jonathan Awde: Executive Chairman.
    • Robert Quartermain, Audra Walsh, Glenn Kumoi: Directors.
    • Jon Case: CFO.
    • Eric Tremblay: COO.
    • Raphael Dutaut: VP Exploration.

Notable Quotes

  • Jason Kosec, HMC’s incoming President & CEO: “The acquisition of Hemlo establishes the foundation for the next leading mid-tier Canadian growth-focused gold producer. Our business objective is clear: to maximize the value of Hemlo’s existing infrastructure through a fit-for-purpose operating approach, while unlocking new opportunities through an aggressive brownfields exploration strategy.”
  • Mark Bristow, Barrick President and CEO: “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.”
Read the original news release →

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