Shares in Hemlo Explorers surged over 28% or C$0.045 on the Toronto Stock Exchange to C$0.205 following the news. 

Provisions of the proposed earn-in agreement include Barrick delivering a pre-feasibility study on the project within six years and funding of US$1,000,000 on or before each anniversary of the definitive agreement. 

Both firms will work to complete the due diligence necessary to sign a definitive agreement by April 30. 

"Hemlo Explorers has moved its Pic Project to a point where it was ready to option to a major," said Hemlo chief executive Brian Howlett. "We believe that we have the best possible partner to complete this program." 

Upon closing of the definitive agreement, Barrick will complete a private placement into Hemlo in which Barrick will subscribe for common shares of Hemlo equal to the lesser of C$300,000 in proceeds and a 5% interest on a non-diluted basis. 

Subject to the successful earn-in by Barrick, a joint venture will be established 80% owned by Barrick and 20% by Hemlo. 

Under the term sheet Barrick will have the right to earn into 910 claims comprising 16,800 hectares for part of the Pic project. 

The Pic project is located 25 km west of Barrick's operations.