Barrick Mining (TSX:ABX,NYSE:B) has closed the sale of its Hemlo gold mine in northern Ontario to Carcetti Capital (TSXV:CART.H), completing a transition the company first announced in September and marking one of its most significant portfolio shifts this year.
In a statement Wednesday (November 26), Barrick said the finalized divestiture is worth up to US$1.09 billion. The company received US$875 million in cash and US$50 million in Hemlo Mining shares at closing, with up to US$165 million in additional payments tied to gold prices and production beginning in 2027.
Barrick also formally thanked the Biigtigong Nishnaabeg and Netmizaaggamig Nishnaabeg First Nations, noting their cooperation and support throughout Hemlo’s operation.
The transaction continues the company’s effort to streamline its holdings and redirect capital to what it calls Tier One assets.
Hemlo Mining, the renamed acquirer, gains control of one of Canada’s longstanding gold operations. For Barrick, the exit removes a non-core asset as it concentrates on its global gold and copper portfolio, which spans 18 countries and includes six Tier One gold mines.
As Barrick exits Hemlo, Wheaton Precious Metals (TSX:WPM,NYSE:WPM) also confirmed it has closed its previously announced gold stream with Carcetti, providing US$300 million in upfront funding.
The stream forms the cornerstone of a financing structure that includes US$542 million in equity proceeds, with Wheaton contributing about US$30 million, as well as up to US$250 million in bank debt. Wheaton originally committed up to US$400 million for the stream, but Hemlo Mining elected to draw US$300 million under the agreed terms.
The completion of the stream delivers immediate production and cash flow to Wheaton while giving Hemlo Mining the liquidity needed to finalize the acquisition and pursue operational improvements at the site.
The company said the gold stream is “a key component” of the mine’s recapitalization and transition under new ownership.
The close of the Hemlo sale comes just days after the company resolved a major standoff in West Africa.
On Monday (November 24), Barrick confirmed it had struck a deal with the Malian government that will return full operational control of the Loulo-Gounkoto complex to the company, ending months of tension that escalated into arbitration at the World Bank’s dispute-resolution center.
People familiar with the matter said that the agreement includes a settlement worth 244 billion CFA francs (US$430 million). According to those sources, Barrick will pay 144 billion CFA francs within six days of signing, with another 50 billion CFA francs covered through VAT-credit offsets.
An additional 50 billion CFA francs had already been paid last year. Barrick declined to say whether the final agreement formally includes these settlement terms.
In exchange, Mali will drop its charges against Barrick, relinquish state control over Loulo-Gounkoto, release four detained employees, and renew the company’s Loulo mining permit for another decade.
The settlement also requires Barrick to comply with Mali’s 2023 mining code, the very issue that triggered the dispute. The company will also now withdraw its arbitration claim.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
