BARRICK Mining has agreed to sell its Hemlo gold mine in Canada to Carcetti Capital for up to $1.09bn, the companies announced on Wednesday.
The transaction comprises $875m in cash at closing, $50m in Carcetti shares, and up to $165m in contingent payments tied to production and gold prices from 2027 over five years, said Reuters reporting on the transaction today.
Carcetti will finance the acquisition through a funding mix including a $400m gold stream arrangement with Wheaton Precious Metals, a $225m loan underwritten by Scotiabank, and approximately $415m from a private placement.
The deal is expected to complete in the fourth quarter, resulting in Carcetti Capital being renamed Hemlo Mining Group. The sale forms part of Barrick’s strategy to divest non-core assets and concentrate on its largest gold and copper operations.
Earlier in August, Barrick exceeded quarterly profit estimates and increased its dividend despite absorbing a $1.04bn charge related to the loss of its Mali mine.
Meanwhile, Barrick faces fresh challenges in Mali as Hilaire Diarra, a senior executive who had been representing the company in tense negotiations with Mali’s government, has switched sides to become an adviser to Mali’s president, said Reuters in a separate report.
The move represents another setback for Barrick’s efforts to negotiate control of its Loulo-Gounkoto gold mining complex, as West African military governments increasingly seek greater control over mineral wealth, the newswire said.
