Canada-based mineral exploration company Hemlo Explorers on Friday announced another extension of the binding term sheet with bullion major Barrick Gold.
The companies originally estimated that a definitive agreement would be signed by April 30.
Hemlo and Barrick were continuing to work through the due diligence process and aimed to finalise the definitive agreement in June, the explorer said in a statement.
In terms of the binding term sheet, Barrick would have the right to earn into 910 claims, comprising 16 800 ha for part of the Pic project, which is located 25 km west of the major’s Hemlo mine, in Ontario.
In terms of the agreement, Barrick could earn an 80% interest in part of the Pic project by delivering a prefeasibility study within six years of the definitive agreement, of which at least C$800 000 has to be spent in the first 12 months.
Barrick must fund work expenditures of C$1-million before each anniversary of the definitive agreement.