Hemlo Explorers stock jumps on Barrick term-sheet
The share price of Hemlo Explorers surged 28% on Monday, after the company announced a binding term sheet with bullion major Barrick, which would have the right to earn into the Pic project.
Barrick will have the right to earn into 910 claims, comprising 16 800 ha for part of the Pic project, which is located 25 km west of the major’s Hemlo mine, in Ontario, Canada.
The companies would aim to complete the due diligence necessary to sign a definitive agreement by April 30.
In terms of the agreement, Barrick could earn an 80% interest in part of the Pic project by delivering a prefeasibility study within six years of the definitive agreement, of which at least C$800 000 has to be spent in the first 12 months.
Barrick must fund work expenditures of C$1-million before each anniversary of the definitive agreement.
“Hemlo Explorers has moved its Pic project to a point where it was ready to option to a major. We believe that we have the best possible partner to complete this programme. We are excited to work with Barrick in bringing this project forward,” said Hemlo Explorers CEO Brian Howlett.
The junior’s share price fetched C$0.20 apiece on Monday.
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