Barrick Mining (TSX:ABX) has agreed to sell its Hemlo Gold Mine in Canada to Carcetti Capital Corp (TSX-V:CART.H) for an aggregate $1.09 billion, as Carcetti undergoes a name change to better reflect its new assets.
Carcetti Capital will be known as Hemlo Mining Corp following the completion of this transaction.
Hemlo will pay a cash consideration of $875 million upon closing and $50 million worth in shares based on the subscription receipt price listed under the equity offering.
CIBC World Markets acted as Barrick’s financial advisor for this sale, with Davies Ward Phillips & Vineberg, and Blake, Cassels & Graydon acting as legal counsel.
The new holder will then follow a cash payment structure to pay up to $165 million in remaining costs across a five-year term based on the production and tiered gold price starting January 2027.
CEO Mark Bristow says the company has faith in the new holder to unlock the potential of the asset.
“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,” Bristow says.
The company is using the funds to strengthen its balance sheet, while also aligning with its capital allocation framework by returning value to shareholders.
Barrick Mining is a globally-charged explorer and developer with operations spanning 18 countries and five continents.
Write to Maddison Elliott at Mining.com.au
Images: Barrick Mining
