Hemlo Explorers stock jumps 53% as Barrick weighs Ontario project earn-in – by Henry Lazenby (Mining.com – April 4, 2022)


The Toronto-quoted equity of Hemlo Explorers Inc. (TSXV: HMLO) jumped more than 53% on Monday after the company revealed it had entered a binding term sheet with Barrick Gold Corporation (TSX: ABX; NYSE: GOLD) that will give Barrick a right to earn up to 80% of the Pic project in Ontario.

Located 25 kilometres west of Barrick’s Hemlo mine, Barrick will have to deliver to Hemlo Explorers a pre-feasibility study within six years of signing the definitive agreement. Under the terms of the deal, Barrick will commit to spending at least $800,000 on the project in the first 12 months, followed by an annual commitment of at least C$1 million ($800,000).

Subject to a successful earn-in, the two companies will form a joint venture corporation owned 80% by Barrick and 20% by Hemlo Explorers. If any party’s interest in the JV declines below 10%, it will convert to a 1% net smelter return royalty.

Both companies said they will work to complete the due diligence necessary to sign a definitive agreement by month-end. The Pic project comprises 910 claims over 16,800 hectares in the Hemlo-Schreiber Greenstone Belt.

For the rest of this article: https://www.mining.com/hemlo-explorers-stock-jumps-53-as-barrick-weighs-pic-earn-in/