PRECIOUS METALS

Metalcorp triples, Melkior lifts a little on Barrick earn-in deals near Hemlo

Major to explore near Hemlo

Staff reporter

This article is 4 years old. Images might not display.

Shares in junior Metalcorp more than trebled on Friday as it announced neighbour Barrick had entered a minimum C$3.7 million earn-in to its Hemlo East property.

Barrick operates the adjacent Hemlo gold mine, where it said last month it planned to extend the minelife by transitioning it to a "modernised tier two asset with a purely underground operation" as the openpit wound down.

Metalcorp said under the Hemlo East agreement, Barrick must pay an initial $3 million within three days of the TSX Venture Exchange accepting the agreement, plus spend at least $700,000 on exploration within the first year.

To earn up to 80%, Barrick must spend at least $4.5 million and deliver an NI 43-101 report within three years.

Barrick could withdraw at any time after the initial $3.7 million worth of commitments.

If the major completed the earn-in, the pair would form an 80:20 joint venture for Hemlo East with funding on a pro-rata basis.

Metalcorp had last raised $100,000 in September and settled debt for equity, both at 3c per share. Its website is under construction.

Shares (TSXV: MTC) in the Ontario-focused junior, which have traded about 3c for much of the past year, shot up 220% on Friday to close at 8c, capitalising it at $7.8 million (US$6 million).

Melkior deal

Meanwhile fellow TSXV-listed Melkior Resources said it had also closed an option/JV agreement with Barrick, at its White Lake project, 20km east of the Hemlo mine.

It said Barrick could earn up to 75% of White Lake by spending $4 million on exploration within five years.

The pair would then form a 75:25 joint venture.

"With Barrick as our partner to move the White Lake project forward, even a small discovery has the potential to be economic because of the property's proximity in relation to their processing facilities," Melkior CEO Jonathon Deluce said.

It's the junior's second deal with a gold producer after finalising an agreement with Kirkland Lake Gold in September, which will see Kirkland invest $1 million in the company and spend up to $110 million to earn 75% of Melkior's Carscallen project in Ontario.

Melkior shares (TSXV: MKR) have risen from 6c to a recent high of $1.25.

They gained 3.3% on Friday to close at 93c, capitalising it at $18.6 million (US$14.2 million).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.