Barrick’s Plan to Sell Hemlo Mine for US$1 Billion Marks Canadian Exit

Barrick Mining (TSX:ABX,NYSE:B) has agreed to sell its Hemlo gold mine in Ontario for up to US$1.09 billion, transferring one of Canada’s most storied gold operations to a new owner and marking Barrick’s shift away from non-core assets.

The Toronto-based company announced Thursday (September 11) that Carcetti Capital (TSXV:CART.H,LSE:ORUG), which will be renamed Hemlo Mining (HMC), will acquire the mine under terms that include US$875 million in cash, US$50 million in HMC 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 that the sale is part of the company’s ongoing capital allocation approach, noting that proceeds will help bolster the company’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.

Once hailed as a cornerstone of Canadian gold production, the mine transitioned from open-pit to underground operations in 2020. Its future will now rest with HMC, a vehicle backed by a group of well-known industry investors and leaders.

The incoming HMC board will include Robert Quartermain, founder of Pretium Resources (TSX:PVG) and former CEO of SSR Mining Inc. (NASDAQ:SSRM,TSX:SSRM), who played a key role in the original discovery of Hemlo while at Teck Resources (TSX:TECK.B,NYSE:TECK,OTC:TCKRF).

The company will also be led by Jason Kosec, named incoming CEO, and supported by a consortium that includes Wheaton Precious Metals (TSX:WPM,NYSE:WPM) and Orion Mine Finance.

To finance the acquisition, HMC 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,” Wheaton CEO Randy Smallwood said in a company press release.

Under the streaming agreement, Wheaton will initially 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 emphasized that Canada remains an important exploration jurisdiction, the Hemlo deal 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.

While those discussions did not result in a deal, Thursday’s announcement confirms the company’s intent to fully exit the Canadian mining landscape.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.