Barrick divests Hemlo gold mine to focus on core assets in $1.1bn sale
Barrick Mining has agreed to sell its Hemlo gold mine in Canada to Carcetti Capital for up to $1.09 billion, the companies said.
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The deal includes $875m in cash at closing, $50m in shares of Carcetti, and up to $165m in contingent payments linked to production and gold prices from 2027 over five years, the statement added.
Carcetti said it will fund the acquisition through a mix of financing, including a $400m gold stream with Wheaton Precious Metals, a $225m loan underwritten by Scotiabank and about $415m from a private placement.
The deal is expected to close in the fourth quarter and will result in Carcetti Capital being renamed to Hemlo Mining Group.
Earlier in August, Barrick topped quarterly profit estimates and raised its dividend despite taking a $1.04bn charge tied to the loss of its mine in Mali, part of a wider effort to shed non-core assets and focus on its largest gold and copper operations.
Hemlo has produced more than 21 million ounces of gold and was once one of Canada's most important mining camps.
Its sale ends Barrick's long history of gold production in Canada, though the company said it will continue to pursue early-stage projects and exploration targets in the country.
Bullion prices have been trading at record levels above $3,600 an ounce, driven by global conflicts, safe-haven demand and US President Donald Trump's tariff campaign. [GOL/]
The rally has boosted profits across the industry, stirring speculation of more mining deals as companies seek to take advantage of high valuations.
Barrick has been implementing a strategy of shedding smaller, less profitable assets, which began after its 2019 merger with Africa-focused Randgold Resources.
"Together with the sales of Donlin and Alturas, total gross proceeds from the divestment of non-core assets this year are expected to generate over $2bn," said Barrick CEO Mark Bristow.
The deal was "slightly positive", according to RBC Capital Markets analyst Josh Wolfson, who added the transaction was at a favourable price but had limited impact on Barrick's net asset value and could trim corporate EBITDA by about 3%.