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Be the first with the news that moves the market- MetalCorp (MTC) is forming a joint venture with Canadian mining giant Barrick Gold (ABR) to advance the Hemlo East gold property in Ontario
- Through the deal, Barrick will be able to earn up to 80 per cent of the property by paying $3 million up front, injecting a further $5.2 million in exploration expenditures and delivering a major technical report within the next three years
- Barrick currently operates the Williams and David Bell Gold Mines, which sit across from Hemlo East
- If Barrick follows the earn-in agreement through, the two companies will then form a joint venture to continue advancing the site
- MetalCorp is currently up 160 per cent and is trading at C$0.065 per share
MetalCorp (MTC) is forming a joint venture with Canadian mining giant Barrick Gold (ABR) to advance the Hemlo East gold property in Ontario.
News of such a huge deal with one of the largest mining companies in the world has sent MetalCorp shares soaring up 160 per cent at market open, shrugging off a tepid year for MTC stock to-date.
Through the deal, Barrick will be able to earn up to 80 per cent of the property, beginning with a $3 million payment up front.
Following the cash payment, Barrick will need to inject a further $5.2 million in exploration expenditures and deliver a major technical report on the site within the next three years.
MetalCorp will retain the remaining 20 per cent stake in the property, while Barrick takes over exploration and spending.
If Barrick follows the earn-in agreement through, the two companies will then form a joint venture to continue advancing the site, under the same 80-20 per cent split.
Donald Sheldon, CEO of MetalsCorp, was pleased to enter into the agreement with Barrick and said he looks forward to a joint venture with them.
“Our shareholders recognise the value of the Hemlo East property and we have always believed in the potential it represents for creating value for their investment. We believe that in Barrick we have secured the right joint venture party to move this project forward,” he added.
Barrick currently operates the Williams and David Bell Gold Mines, which sit across from Hemlo East, suggesting a desire to maximise its presence in a prolific gold region.
MetalCorp is currently up 160 per cent and is trading at C$0.065 per share at 10:16am EST.
