https://www.miningweekly.com

Barrick enters earn-in deals with two juniors near Hemlo

23rd November 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Canadian major Barrick Gold has entered into two option and joint venture (JV) agreements with junior miners near its Hemlo operation, in Ontario.

The first is with TSX-V-listed Melkior Resources, which has granted Barrick the right to earn-on up to a 75% interest in the White Lake project, 20 km from the Hemlo mine.

Under the terms of the option agreement, Barrick could earn a 75% interest in the White Lake property in consideration for completing $4-million in exploration expenditures over a period of five years.

Barrick has a minimum commitment of $500 000 during the first two years of the option period, during which the bullion major will also act as the operator of the property.

Upon Barrick completing the expenditures and earning its 75% interest, the parties will enter into a JV agreement to carry on operations with respect to the property, and the funds required for further development will be contributed by the JV parties based on their proportional JV interests.

Dilution of a shareholder's interest below 10% will result in the conversion of the interest to a net smelter return royalty of either 1% or 2% on certain claims dependent upon pre-existing royalties.

Melkior CEO Jonathon Deluce commented that “there is still a lot to come from this mining camp”, which has produced more than 21-million ounces of gold, with “Barrick’s plans to extend the life of the Hemlo gold mine by transitioning it to a modernised tier-two asset”.

Barrick has also entered into an earn-in agreement with TSX-V-listed Metal Corp, relating to the company’s Hemlo East gold property, which is adjacent to Barrick’s Williams and David Bell gold mines.

The earn-in agreement provides that Barrick has the right and option to earn an 80% interest in the Hemlo East property upon satisfaction of several conditions.

Some of these conditions include Barrick making an initial payment of C$3-million to MetalCorp on, or before, the third business day following the TSX-V’s acceptance of the earn-in agreement; and Barrick funding expenditures on the Hemlo east property of at least C$700 000 on, or before the first anniversary of the initial payment date, as well as a payment of at least C$4.5-million on or before the third anniversary of the initial payment date.

During the earn-in period, Barrick will be the operator of the Hemlo East property and will manage and execute all exploration programmes and spending on the property.  

Barrick may withdraw from the earn-in at any time, provided it has paid to MetalCorp the C$3-million initial payment, and fulfilled its obligation to fund the C$700 000 guaranteed amount of expenditures on the Hemlo East property.

After completion of the earn-in, Barrick and MetalCorp will form a JV company to hold the Hemlo East property, to be owned 80% by Barrick and 20% by MetalCorp with funding on a pro-rata basis.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION