Barrick Mining Corporation (NYSE:B) announced Wednesday that it has struck a deal to divest its Hemlo Gold Mine in Ontario, Canada, in a transaction worth as much as $1.09 billion.
The mine will be acquired by Carcetti Capital Corp., which plans to rename itself Hemlo Mining Corp. once the sale closes.
The transaction includes upfront cash of $875 million, equity in the acquiring firm valued at $50 million, and additional gold price-linked contingent payments of up to $165 million beginning in 2027.
The buyer is currently listed on the NEX Board of the TSX Venture Exchange and aims to move onto the TSXV’s main board after completing the deal.
The incoming operator, Hemlo Mining Corp., will be led by an experienced management team. Notably, Robert Quartermain, who previously headed SSR Mining Inc. and founded Pretium Resources Inc., will play a central role.
Quartermain has historical ties to the Hemlo deposit, having contributed to its discovery during his tenure as a geologist at Teck Resources Limited.
Backing for the venture comes from major resource-focused investors, including Wheaton Precious Metals and Orion Mine Finance Management.
Barrick said it will apply the funds to bolster its balance sheet and maintain its strategy of returning capital to shareholders.
The sale continues the company’s broader plan to streamline its portfolio, with total proceeds from recent asset divestments expected to surpass $2 billion this year.
“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,” said Mark Bristow, Barrick’s president and CEO. He expressed confidence in the new operator’s ability to unlock the mine’s potential while continuing to benefit local stakeholders.
Next Steps
The deal is expected to wrap up in the fourth quarter of 2025, pending standard regulatory approvals.
CIBC World Markets is acting as Barrick’s financial advisor, while Davies Ward Phillips & Vineberg LLP and Blake, Cassels & Graydon LLP are providing legal guidance.
Price Action: B shares are trading lower by 0.61% to $29.30 premarket at last check Thursday.
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