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WPM Boosts Gold Reserves With Carcetti's Hemlo Mine Financing Package
ZACKSยท 2025-09-11 17:20
Core Viewpoint - Wheaton Precious Metals Corp. has entered into a financing agreement with Carcetti Capital for the acquisition of the Hemlo Mine from Barrick Mining, which is expected to enhance Wheaton's gold reserves and diversify its asset base [1][8]. Financing Details - The financing package includes a $400 million gold stream, an equity financing expected to raise $415 million, and a $200 million bank debt facility. Wheaton will participate in the equity financing up to $50 million or 20% of the total [2][8]. Acquisition Timeline - The acquisition deal between Carcetti and Barrick Mining is anticipated to be finalized in the fourth quarter of 2025, after which Carcetti will rebrand as Hemlo Mining Corp [3]. Benefits to Wheaton Precious Metals - The Hemlo Mine will contribute immediate gold ounces to Wheaton's portfolio, operating in a politically stable area with a strong operational team [4][8]. Gold Stream Agreement - Wheaton will acquire 13.5% of the payable gold until HMC delivers 181,000 ounces, followed by 9.0% until an additional 157,330 ounces are delivered, and then 6.0% for the mine's remaining life [5][8]. Mine Operations and Production - The Hemlo Mine is projected to operate for 14 years, with an average production of 20,000 ounces per year during the first decade and over 17,000 ounces annually throughout its lifespan [6][8]. Stock Performance - Wheaton Precious Metals' stock has increased by 73.3% over the past year, significantly outperforming the industry average growth of 17.9% [7].