Hemlo Mining Pours First Gold, Signals New Era for Ontario Mine

TORONTO, ON – December 18, 2025

Hemlo Mining Corp. (TSXV: HMMC) has successfully completed its first gold pour at the historic Hemlo Gold Mine, a landmark achievement that solidifies its emergence as Canada’s newest mid-tier gold producer. The inaugural pour, yielding approximately 6,704 ounces of gold, took place less than a month after the company finalized its acquisition of the prolific Ontario mine from industry giant Barrick Mining Corp. on November 26, 2025.

The event is more than symbolic; it represents a critical operational milestone, demonstrating a smooth transition of control while maintaining production continuity. Company officials noted that the pour was one of the largest from the mine this year and that key performance indicators such as plant throughput and metallurgical recoveries have remained stable and aligned with the new owner's operating plan.

"The first gold pour under Hemlo Mining Corp. marks a defining milestone for our Company," stated Jason Kosec, President and CEO of Hemlo Mining Corp., in a press release. "Against a record gold-price environment, our team executed a seamless operational transition while maintaining an uncompromising focus on health, safety, and the environment. This pour reflects the strength of our mine, the quality of our people, and the disciplined plan we are now putting into action to stabilize operations, drive performance, and unlock meaningful long-term value."

The Strategic Acquisition of a Canadian Giant

The milestone pour is the first tangible result of a complex, high-stakes transaction that saw the former Carcetti Capital Corp. transform into Hemlo Mining Corp. and acquire a cornerstone Canadian asset. The acquisition, valued at up to US$1.1 billion, involved a multi-faceted payment structure designed to benefit both parties.

Hemlo Mining Corp. made an upfront cash payment of US$875 million and provided Barrick with US$50 million in equity. The deal also includes up to US$165 million in additional contingent payments linked to production and tiered gold price thresholds, allowing Barrick to retain upside exposure to the mine's performance in a strong market. For Barrick, the sale represented the divestiture of its last remaining Canadian operation, part of a broader corporate strategy to focus on its portfolio of Tier One global assets.

To finance the ambitious takeover, Hemlo Mining Corp. assembled a sophisticated financing package exceeding US$1.0 billion. This included a US$400 million gold stream agreement with Wheaton Precious Metals Corp., US$225 million in senior secured credit facilities from the Bank of Nova Scotia, and approximately US$415 million raised through a substantial private placement of subscription receipts.

Revitalizing a Legacy Asset in a Record Gold Market

The Hemlo Gold Mine, located near Marathon, Ontario, is a legendary asset in Canadian mining history. Since commencing production in 1985, it has produced approximately 25 million ounces of gold from both open pit and underground operations. Hemlo Mining Corp. has acquired not just a mine, but a decades-long legacy of production and a vast geological district ripe for further exploration.

The timing of the new company’s operational debut could not be more opportune. The first gold pour occurred amidst what the company calls a "record gold-price environment." As of December 2025, spot gold has been trading near historic highs, hovering above US$4,300 per ounce after reaching an all-time peak of over US$4,380 in October. Year-over-year, the precious metal is up over 65%, driven by geopolitical uncertainty, strong central bank buying, and expectations of monetary policy easing.

This robust market provides a powerful financial tailwind for the new operator. Major financial institutions have a bullish outlook for 2026, with analysts at J.P. Morgan and Goldman Sachs forecasting that gold could climb towards US$5,000 per ounce. Such prices would dramatically enhance the profitability of the Hemlo operation and accelerate the company's ability to generate free cash flow and fund its growth initiatives.

A New Chapter of Exploration and Growth

While maintaining stable production is the immediate priority, Hemlo Mining Corp. has signaled that its long-term strategy is centered on growth. The company's leadership has outlined a two-pronged approach: maximizing value from the mine's extensive existing infrastructure with a "fit-for-purpose operating approach" and unlocking new value through an "aggressive brownfields exploration program."

Brownfields exploration—searching for new deposits within or near an existing mine footprint—is a capital-efficient strategy that leverages established infrastructure, geological data, and operational expertise. By focusing on the well-endowed Hemlo mining camp, the company aims to extend the mine's life and discover new, high-grade resources that can be quickly brought into the production plan. Market watchers and investors are keenly awaiting further details on these operational and exploration initiatives, which the company has promised to deliver in a full corporate update in early January 2026.

Financial Clarity for a New Public Company

Alongside its operational triumph, Hemlo Mining Corp. also took steps to ensure financial transparency with its new investor base by issuing several rectifications to its post-consolidation share capital disclosures. Such corrections are common after complex transactions involving amalgamations and share consolidations, but the company's detailed clarification underscores a commitment to precise financial reporting.

The company clarified that following its transaction, the actual number of issued and outstanding common shares was 295,496,636, a minor reduction of 284 shares from what was previously stated due to rounding. More significantly, it corrected a misallocation between incentive securities, resulting in 6,592,595 stock options and 3,089,945 restricted share units being outstanding after accounting for new employee grants.

Further adjustments to the capital structure occurred with the recent conversion of $2.5 million in unsecured convertible debentures, which added another 833,332 common shares. As of December 17, 2025, the company's total issued and outstanding common shares stood at 296,329,968. For a newly listed public entity, establishing this baseline clarity is a crucial step in building long-term investor confidence as it begins its new life as a significant Canadian gold producer.