Barrick forms potential JV's with two juniors near Hemlo
As plans continue to extend the life of the Hemlo mine in Ontario and move it toward a modernized tier two asset, Barrick Gold is also looking into exploration properties nearby.
On Friday, Barrick announced a joint venture agreement for MetalCorp’s Hemlo East property, 350 km east of Thunder Bay, and next to Barrick’s Williams and David Bell mines.
The earn-in agreement gives Barrick the right and option to earn an 80% interest in the Hemlo East property by making an initial payment of C$3 million and spending at least C$5.2 million on exploration. Barrick also has to deliver an NI 43-101 technical report on Hemlo East within three years of of the initial payment.
During the earn-in period, Barrick will be the operator of the Hemlo East property. It may withdraw from the agreement at any time, provided it has made the initial payment and fulfilled its obligation to fund the C$700,000 guaranteed amount of expenditures.
On the same day, Barrick closed an option and pending joint venture agreement with Melkior Resources’ White Lake project, 20 kilometers east of the Hemlo mine.
Under the option agreement, Barrick can earn a 75% interest in the property by spending C$4 million on exploration over five years. The gold major has a minimum commitment of C$500,000 for the first two years of the option period, and will act as the project operator during the five-year period.
When Barrick completes the expenditures and earning its 75% interest, the companies will then enter into a JV agreement to carry on operations at White Lake. Funds required for further development will be contributed by the JV parties based on their proportional interests.
“With Barrick’s plans to extend the life of the Hemlo gold mine by transitioning it to a modernized tier two asset, it is clear there is still a lot to come from this mining camp,” Melkior CEO Jonathon Deluce said in a press release.
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