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Barrick will sell the Hemlo mine to Carcetti Capital for over 1 billion USD
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Release time：2025-09-12
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This sale is part of Barrick's strategy to strengthen the balance sheet and enhance shareholder returns.
Barrick Gold Corporation has signed an agreement to sell the Hemlo gold mine in Canada to Carcetti Capital Corporation for up to USD 1.09 billion (CAD 1.51 billion). This divestment is part of Barrick's strategy to strengthen its balance sheet and enhance shareholder returns. Upon completion of the transaction, Carcetti Capital Corporation will be renamed Hemlo Mining Corporation (HMC). The sale agreement includes a cash consideration of USD 875 million payable at closing, as well as USD 50 million worth of HMC shares issued to Barrick at the same price per HMC subscription receipt as the concurrent HMC equity offering.
Additionally, a cash payment arrangement linked to production and graded gold prices (with a maximum amount of USD 165 million) will commence in January 2027 and remain effective for five years. Mark Bristow, President and CEO of Barrick, stated: "The attractive valuation sale of Hemlo marks the end of Barrick's long-term successful chapter at this mine and underscores our focus on creating value through a tier-one gold and copper portfolio. We believe that HMC's experienced management and the existing Hemlo team will excellently manage the asset, unlock its future potential, and continue to generate benefits for all stakeholders. Along with the sales of Donlin and Alturas, total proceeds from non-core asset divestitures are expected to exceed USD 2 billion this year."
Carcetti Capital has secured financing agreements of at least USD 1 billion to cover the initial cash payment of USD 875 million and working capital needs upon closing. The financing package includes USD 400 million provided through a gold streaming agreement with Wheaton Precious Metals, and a USD 225 million senior secured credit facility fully underwritten by the Bank of Nova Scotia. This loan is divided into a USD 200 million term loan for the acquisition and a USD 25 million revolving credit facility for working capital. Additionally, the company will raise USD 415 million through a private placement of subscription receipts (structured as a bought deal). Jason Kosec, the new President and CEO of HMC, stated: "The acquisition of Hemlo lays the foundation for the next growth-focused mid-tier Canadian gold producer. Our business objective is clear: to maximize the value of Hemlo's existing infrastructure through fit-for-purpose operations while unlocking new opportunities through an active brownfield exploration strategy." HMC is currently listed on the TSX Venture Exchange NEX and is expected to transfer to the TSX Venture Exchange upon completion of the Hemlo acquisition. The completion of this sale is subject to customary closing conditions and obtaining necessary regulatory approvals, with the transaction expected to close in Q4 2025. CIBC World Markets serves as Barrick's financial advisor, while Davies Ward Phillips & Vineberg and Blake, Cassels & Graydon act as legal advisors.
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