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Mining News August 30, 2022 05:45:14 PM

Barrick Gold Secured Rights to Earn 80% Interest in Pic Project

Paul Ploumis
ScrapMonster Author
Barrick will deliver a Pre-Feasibility Study within six years of which at least $800,000 is the guaranteed expenditure in the first year of the agreement.

Barrick Gold Secured Rights to Earn 80% Interest in Pic Project

SEATTLE (Scrap Monster): Barrick Gold Corporation has reportedly entered into a definitive agreement with Hemlo Explorers Inc. that gives it the right to earn up to 80% interest in the latter’s Pic project located in northwestern Ontario. Also, Barrick Gold has agreed to subscribe for 1.84 million shares of Hemlo priced at 10.5 cents each. The financing is expected to come to a close by 31st August, 2022.

As per the agreement, Barrick Gold will have the right to earn into 910 claims comprising 16,800 hectares for part of the Pic Project, located just 25kilometres away from Barrick’s Hemlo Mine.

Barrick will deliver a Pre-Feasibility Study within six years of which at least $800,000 is the guaranteed expenditure in the first year of the agreement. Furthermore, it is required to fund work expenditures of $1,000,000 on or before each anniversary of the agreement until the end of the expenditure period. The expenditure period of six years may be extended by additional two years by paying an amount of $500,000 for each year.

The agreement also calls for establishment of a joint-venture corporation to be held 20% by Hemlo Explorers and remaining 80% by Barrick Gold. In the event of either party’s interest in the joint venture falling below 10%, then that party’s interest may be converted to 1% net smelter return loyalty.

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