Barrick Mining (TSX:ABX,NYSE:B) has agreed to sell its Hemlo gold mine in Ontario, Canada, for up to US$1.09 billion, continuing the company’s shift away from non-core assets.
The company announced on Thursday (September 11) that Carcetti Capital (TSXV:CART.H), which will be renamed Hemlo Mining, will acquire the mine under terms that include US$875 million in cash, US$50 million in Hemlo Mining shares and as much as US$165 million in contingent payments tied to future gold prices and production.
Barrick President and Chief Executive Mark Bristow said the sale is part of the company’s ongoing capital allocation approach, noting that proceeds will help bolster the firm’s balance sheet and fund returns to shareholders.
“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 said.
Hemlo, located near Marathon, Ontario, has produced more than 25 million ounces of gold over three decades of continuous operation. The mine transitioned from open-pit to underground operations in 2020.
The incoming Hemlo Mining board will include Robert Quartermain, founder of Pretium Resources and former CEO of SSR Mining (NASDAQ:SSRM,TSX:SSRM). He played a key role in the original discovery of Hemlo while at Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK). The company will be led by incoming CEO Jason Kosec, and supported by a consortium that includes Wheaton Precious Metals (TSX:WPM,NYSE:WPM) and Orion Mine Finance.
To finance the acquisition, Hemlo Mining has secured a US$1 billion package comprised of US$400 million in gold streaming from Wheaton, US$415 million in equity and US$200 million in debt.
Wheaton will also take up to US$50 million of the equity raise.
“Hemlo offers a unique opportunity to add immediate, accretive gold ounces from a politically stable jurisdiction, backed by a long history of production and a capable operating team,” said Wheaton CEO Randy Smallwood.
Under the streaming agreement, Wheaton will purchase 13.5 percent of Hemlo’s payable gold until 181,000 ounces are delivered, after which the rate will fall to 9 percent for another 157,330 ounces, and then to 6 percent for the remainder of the mine’s life. Wheaton’s attributable production is expected to average around 20,000 ounces annually for the first decade and more than 17,000 ounces annually over the life of mine, which is forecast to extend for at least 14 years.
For Barrick, the sale continues a multi-year effort to trim smaller, less profitable operations in favor of large, long-life assets that meet its “tier one” criteria. Earlier this year, the company also divested its stakes in Donlin and Alturas, bringing expected gross proceeds from non-core asset sales in 2025 to more than US$2 billion.
While Barrick has emphasized that Canada remains an important exploration jurisdiction, the Hemlo arrangement effectively ends its role as a mine operator in its home country.
Reports of a potential sale had circulated since mid-2024, spurring rumors that Barrick was in advanced talks with Discovery Silver (TSX:DSV,OTCQX:DSVSF) to divest Hemlo; those discussions ultimately did not result in a deal.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
