Acquisition of Hemlo Gold Mine Launches a New Mid-Tier Canadian Gold Producer

Core Viewpoint - Carcetti Capital Corp. has entered into a definitive agreement to acquire a 100% interest in the Hemlo Gold Mine from Barrick Mining Corporation for $875 million in cash and 34.6 million common shares, with additional contingent cash payments of up to $165 million based on gold price thresholds [1][8][18]. Transaction Highlights - The total consideration for the acquisition includes $875 million in cash and 34.6 million shares, plus up to $165 million in contingent payments [1][8][18]. - The transaction is fully funded with at least $1.0 billion in gross proceeds from a gold stream, an underwritten term loan, and a bought deal private placement [8][23]. - The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions [21][40]. Leadership Team - Jason Kosec will serve as President & CEO, bringing experience from Millennial Precious Metals Corp. and Integra Resources Corp. [5][10]. - Jonathan Awde will be the Executive Chairman, previously co-founder and CEO of Dakota Gold Corp. [4]. - Other key appointments include Robert Quartermain, Audra Walsh, and Glenn Kumoi, all with extensive mining industry experience [6][7][10]. Hemlo Overview - The Hemlo gold mining complex has produced approximately 25 million ounces of gold since its initial production in 1985 [13]. - The mine is located in Ontario, Canada, and has a long life with average annual gold production of 154,000 ounces at an all-in sustaining cost of under $1,550 per ounce over a 14-year mine life [9][19]. Financing Structure - The financing package includes a $400 million gold stream with Wheaton Precious Metals, a $200 million term loan, and a $25 million revolving credit facility [23][25]. - The bought deal private placement is expected to raise approximately $415 million [29]. Economic Analysis - The after-tax net present value (NPV) of the Hemlo project is estimated at $1.1 billion based on consensus gold prices and a 5% discount rate [19][52]. - The average annual gold production is projected to be 154,000 ounces over a 14-year mine life, with significant mineral reserves and resources identified [19][47]. Community Engagement - The company is committed to working with local First Nations and the Hemlo community to ensure shared benefits and sustainable economic opportunities [22][28].