What is the story about?
What's Happening?
Barrick Mining has agreed to sell its last producing gold mine in Canada, Hemlo, to Carcetti Capital, which will be renamed Hemlo Mining Corp (HMC), for up to $1.09 billion. The transaction includes $875 million in cash at closing, $50 million in HMC shares, and up to $165 million in production and gold price-linked payments starting in 2027. This sale is part of Barrick's strategy to exit noncore assets and focus on large, long-life gold and copper operations. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary conditions.
Why It's Important?
The sale of Hemlo marks a significant step in Barrick's strategy to optimize its portfolio by divesting smaller, lower-margin assets. This move allows Barrick to concentrate on its Tier 1 mines, which are characterized by high production, long mine life, and low costs. The proceeds from the sale will strengthen Barrick's balance sheet and support shareholder returns. The transaction also highlights Barrick's focus on advancing growth in copper, positioning itself for the energy transition. HMC, backed by Wheaton Precious Metals and Orion Mine Finance, is expected to unlock the future potential of Hemlo and continue delivering benefits to stakeholders.
What's Next?
HMC plans to graduate to the TSX-V as part of the transaction, with leadership including Robert Quartermain, former CEO of SSR Mining. Barrick retains a pipeline of early-stage projects and exploration targets in Canada, indicating that the country remains a priority jurisdiction despite the sale. The completion of the Hemlo sale, along with other divestments, is expected to generate over $2 billion in total gross proceeds for Barrick this year.
Beyond the Headlines
The sale of Hemlo underscores Barrick's disciplined focus on building value through its Tier 1 gold and copper portfolio. This strategic shift reflects broader industry trends where mining companies are increasingly prioritizing high-quality assets to ensure sustainable growth and profitability. The involvement of experienced management at HMC suggests a commitment to responsible stewardship and potential for future development at Hemlo.
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