#Canada #Vancouver #Wheaton Precious Metals #Hemlo Mine #Carcetti Capital

Wheaton Precious Metals Backs Carcetti Capital for Hemlo Mine Acquisition

Wheaton Precious Metals Corp. has made a pivotal decision to support Carcetti Capital Corporation by providing substantial financing to facilitate its acquisition of the Hemlo Mine from Barrick Mining Corporation. This announcement marks a significant milestone in both companies' trajectories and the mining industry's ongoing evolution.

The financing commitment from Wheaton entails a promising $400 million gold stream. This financial support is coupled with an equity financing initiative that is projected to yield around $415 million, alongside an additional $200 million sourced through bank loans. This comprehensive package not only strengthens Carcetti's position in the market but also positions the acquisition as a major step towards enhancing the operational capabilities at Hemlo Mine.

Wheaton's involvement is more than just financial; it represents a strategic alignment between two entities focusing on bringing out the latent potential of one of Canada’s key mining assets. According to Randy Smallwood, CEO of Wheaton Precious Metals, the Hemlo Mine offers a unique proposition to add immediate gold production from a politically stable region. This collaboration exhibits Wheaton's dedication to fostering growth within the mining sector while maintaining a keen focus on financial prudence and operational improvement.

Wheaton has committed to providing up to $50 million or 20% of the total equity financing. This financial strategy will enable Carcetti to improve the Hemlo Mine's operational framework, maximizing its production potential. Once the acquisition is finalized, Carcetti intends to rebrand itself as Hemlo Mining Corp. (HMC), a move that showcases a renewed focus on the mine's legacy and future.

As part of the deal, Wheaton will acquire a gold stream purchase agreement, which grants the company rights to 13.5% of the mine's payable gold until a threshold of 181,000 ounces is reached. Subsequently, Wheaton's share will adjust to 9.0% until another set threshold of 157,330 ounces is achieved, ultimately stabilizing at 6% for the mine's operational lifetime.

In addition to financial benefits, this transaction is expected to enhance Wheaton's total mineral reserve estimates significantly, thereby reinforcing its market position and operational framework. The projected output from Hemlo is around 20,000 ounces of gold annually over the first decade, contributing positively to Wheaton's growth trajectory and profitability.

Both companies have emphasized their commitment to adhering to environmental and social governance standards. Hemlo Mining Corp, under the leadership of incoming CEO Jason Kosec, is poised to leverage Wheaton’s expertise and financial backing to extract maximum value from the Hemlo site while ensuring sustainable practices.

As an investment firm, Carcetti, now transitioning to Hemlo Mining, is proud to have such strong support as it embarks on this operational enhancement journey. Jason Kosec expressed gratitude towards Wheaton, stating that their partnership validates the opportunity's value while strengthening Hemlo Mining’s capacity to harness the mine's potential responsibly.

In conclusion, Wheaton Precious Metals’ strategic involvement in this multi-financing deal serves as an indicator of its robust market standing and commitment to sustainable mining practices. The Hemlo Mine acquisition not only promises immediate growth potential but also aligns with Wheaton’s core values of enhancing value for all stakeholders involved. With this backing, Hemlo Mining is well-positioned to embark on a future characterized by sustainability and operational excellence.

Future Outlook

The deal is projected to close in the fourth quarter of 2025, and both Wheaton and the newly formed Hemlo Mining Corp. anticipate leveraging their combined strengths to deliver substantial results in the years to come. In a climate where the mining industry continually seeks to innovate and evolve, partnerships like these are essential for navigating the complexities of modern mineral extraction and investment.