By Arunima Kumar
(Reuters) – Barrick Mining said on Wednesday it will sell its last producing Canadian gold mine, Hemlo, to Carcetti Capital for up to $1.09 billion.
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 U.S. 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.
The deal includes $875 million in cash, $50 million in shares of the renamed Hemlo Mining Corp, and up to $165 million in contingent payments linked to output and gold prices starting in 2027.
Carcetti said it will fund the acquisition through a mix of financing, including a $400 million agreement with Wheaton Precious Metals.
The deal is expected to close in the fourth quarter.
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 $2 billion,” 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 favorable price but had limited impact on Barrick’s net asset value and could trim corporate EBITDA by about 3%.
(Reporting by Arunima Kumar and Surbhi Misra in Bengaluru; Editing by Alan Barona and Krishna Chandra Eluri)
