Source: Northern Ontario Business
  • Hemlo Explorers (HMLO) has signed an agreement with a wholly-owned subsidiary of Barrick Gold Corporation
  • The agreement gives Barrick the right to earn an 80-per-cent interest in the Pic Project
  • Hemlo and Barrick have also executed a subscription agreement which empowers Barrick to subscribe for 1,841,468 common shares on a private-placement basis
  • The common shares will be priced at $0.1052 per share for gross proceeds of $193,722.43
  • Hemlo Explorers is a Canadian-based mineral exploration company with a portfolio of projects in Ontario and Nunavut
  • Hemlo Explorers Inc. opened the day’s trading at $0.095 per share

Hemlo Explorers (HMLO) has signed agreement with a wholly-owned subsidiary of Barrick Gold Corporation.

The agreement gives Barrick the right to earn an 80-per-cent interest in the Pic Project.

Hemlo and Barrick have also executed a subscription agreement which empowers Barrick to subscribe for, on a private-placement basis, 1,841,468 common shares priced at $0.1052 per share for gross proceeds of $193,722.43.

The financing is expected to close on or about August 31, 2022, subject to receipt of the approval of the TSX Venture Exchange.

According to the agreement, Barrick may earn an 80-per-cent interest (the earn-in) in the Pic Project by delivering to the company a pre-feasibility study within six years (the expenditure period) of the definitive agreement.

Also, to maintain the earn-in right from the date of the first anniversary of the definitive agreement to the end of the expenditure period, Barrick must fund work expenditures of $1,000,000 on or before each anniversary of the agreement.

Furthermore, Barrick will have the option to extend the expenditure period by two additional one-year periods by paying to the company an amount of $500,000 for each one-year extension

If there is a successful earn-in by Barrick, Hemlo and Barrick shall establish a joint-venture corporation (the JV corp.), to be held based on 20 per cent to the company and 80 per cent to Barrick.

The proceeds of the private placement will be used to explore and advance the company’s Hemlo area properties and for general corporate purposes.

Hemlo Explorers is a Canadian-based mineral exploration company with a portfolio of projects in Ontario and Nunavut.

Hemlo Explorers Inc. opened the day’s trading at $0.095 per share.


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