Wheaton Precious Metals has committed financing to Carcetti Capital, to be renamed Hemlo Mining Corp (HMC), to support its planned acquisition of the Hemlo mine from Barrick Mining.

The financing package for the transaction totals about $1-billion and comprises a $400-million Wheaton gold stream, a $415-million equity raise and $200-million in bank debt. Wheaton will also participate in the equity financing for up to the lesser of $50-million or 20%.

“Hemlo offers a unique opportunity to add immediate, accretive gold ounces from a politically stable jurisdiction, backed by a long history of production and a capable operating team,” said Wheaton CEO Randy Smallwood. “We are proud to support HMC in its acquisition of a mine that has long been considered a cornerstone of Canada's mining industry, while also contributing to strategic M&A momentum across the sector.”

“The Hemlo stream reflects our commitment to disciplined capital deployment and long-term value creation,” added Wheaton president Haytham Hodaly. “This transaction highlights our continued focus on investing in assets with strong geological potential and responsible stewardship. We are pleased to partner with HMC, whose leadership is guided by a strong strategic vision for unlocking further value at Hemlo.”

“We are grateful to have the support of Wheaton Precious Metals as we move forward with the acquisition of the Hemlo Gold mine,” said incoming HMC CEO Jason Kosec.

“Their backing not only validates the quality of the opportunity but also strengthens our ability to unlock the mine's full potential. With Wheaton's partnership, we can responsibly maximise value from the operation, create meaningful benefits for our stakeholders, and continue building a strong Canadian intermediate growth focused gold producer.”

Under the stream agreement, Wheaton will initially purchase 13.5% of payable gold until 181 000 oz are delivered, after which the rate will drop to 9% for a further 157 330 oz, and then to 6% for the life of mine. Payments will be made at 20% of the spot price of gold.

Attributable production from the stream is forecast to average about 20 000 oz/y for the first ten years and more than 17 000 oz/y for the life of mine. Hemlo is forecast to produce for 14 years, with additional brownfield exploration potential.

The transaction, which will also give Wheaton a right of first refusal over future precious metals streams at Hemlo, is expected to close in the fourth quarter of 2025.

Hemlo, located near Marathon, Ontario, has produced about 25-million ounces of gold over more than three decades of continuous operation. It transitioned from openpit to underground mining in 2020.