- Hemlo Explorers Inc. (HMLO) has extended its previously announced definitive agreement with a Barrick Gold Corporation (ABX) subsidiary
- Both parties continue to work to finalize the definitive agreement this month
- Previous terms included a binding term sheet where Barrick would have had the right to earn 910 mining claims on the Pic Project
- If successful, then the companies will build a joint-venture corporation
- Hemlo Explorers Inc. (HMLO) is unchanged trading at $0.19 per share as of 3:02 p.m. ET
- Barrick Gold Corporation (ABX) is up 5.17 per cent trading at $26.85 per share as of 3:02 p.m. ET
Hemlo Explorers (HMLO) has extended its previously announced definitive agreement with a Barrick Gold Corporation (ABX) subsidiary.
Both parties continue to work through the due diligence process and are working to finalize the definitive agreement this month.
The original negotiations included a binding term sheet where Barrick would have had the right to earn 910 mining claims spanning 16,800 hectares for part of the Pic Project, which is located 25 kilometres west of Barrick’s Hemlo Mine.
Previous key terms included Barrick having the option to earn an 80 per cent interest for part of the Pic Project by completing a pre-feasibility study within six years of the next stage of the definitive agreement, at least $800,000 of which is the guaranteed expenditure during the first year.
Barrick was also previously asked to fund work expenditures of $1 million by each anniversary of the definitive agreement to maintain its earn-In right.
Barrick has the option to extend the expenditure period by two additional one-year periods by paying Hemlo $500,000 for each one-year extension.
Upon closing the agreement, Barrick will also need to complete a private placement with Hemlo to subscribe for an eventually determined number of common shares of Hemlo equal to the lesser of $300,000 in proceeds or a 5.00 per cent interest on a non-diluted basis.
If the earn-in option is successfully exercised, then the companies will build a joint-venture corporation with Hemlo owning 20 per cent and Barrick owning 80 per cent.
Hemlo Explorers Inc. (HMLO) is unchanged trading at $0.19 per share as of 3:02 p.m. ET.
Barrick Gold Corporation (ABX) is up 5.17 per cent trading at $26.85 per share as of 3:02 p.m. ET.