Wheaton Precious Metals commits $400mn to fund Carcetti Capital’s Hemlo Mine takeover from Barrick

Wheaton Precious Metals Corp. (NYSE: WPM; TSX: WPM), one of the world’s leading precious metals streaming companies, has agreed to provide up to $400 million in gold stream financing to Carcetti Capital Corporation. The funding will support Carcetti’s proposed acquisition of the Hemlo Mine from Barrick Mining Corporation (NYSE: GOLD), marking a significant transaction in Canada’s gold mining sector. The deal, announced on September 10, 2025, is structured to help Carcetti secure ownership of one of Canada’s most historic gold assets while enabling further investment to extend the mine’s life.

The financing package includes three key components: a gold stream of up to $400 million from Wheaton Precious Metals, a concurrent equity financing expected to generate approximately $415 million, and a $200 million acquisition facility arranged with lending institutions. Once the acquisition closes, Carcetti plans to rebrand as Hemlo Mining Corp. (HMC), signaling its ambition to emerge as a mid-tier Canadian gold producer.

Why is Wheaton Precious Metals backing Carcetti Capital’s acquisition of Hemlo Mine?

The Hemlo Mine, located in Ontario, has been a cornerstone of Canadian gold production for decades. Since its discovery in the early 1980s, Hemlo has produced more than 21 million ounces of gold and has long been considered one of the most consistent operations in the country. While output has declined in recent years, analysts have noted that the site still holds considerable brownfield exploration potential due to its extensive underground infrastructure and largely untapped mineral zones.

Wheaton Precious Metals, known for pioneering the streaming model where it provides upfront capital to mining companies in exchange for a percentage of future production, views Hemlo as a rare opportunity to secure long-term, low-risk gold ounces from a politically stable jurisdiction. According to the company’s CEO, Randy Smallwood, Hemlo represents an “immediate, accretive” source of gold, backed by proven operational capabilities. Industry observers have echoed that view, pointing out that Canada remains a favorable environment for mining investment compared to more volatile jurisdictions.

This move also fits into a broader pattern. The Canadian gold sector has been consolidating since Barrick Gold and Randgold Resources merged in 2019 to create one of the world’s largest gold miners. Since then, mid-tier players have sought to scale up through acquisitions, with Hemlo seen as a strategic prize for any aspiring intermediate gold company. Wheaton’s decision to align with Carcetti Capital indicates confidence not only in Hemlo’s remaining resource potential but also in Carcetti’s leadership team, which has promised to unlock greater efficiency and extend mine life.

What are the financial details of the gold stream and acquisition financing structure?

The financing deal between Wheaton Precious Metals and Carcetti Capital is built on a multi-layered structure designed to provide stability and growth capital for Hemlo. The centerpiece is the $400 million gold stream, under which Wheaton will provide upfront cash consideration to Hemlo Mining Corp. in exchange for the right to purchase 13.5% of the mine’s payable gold until 181,000 ounces are delivered. After reaching this first threshold, Wheaton’s share will decline to 9.0% of payable gold until an additional 157,330 ounces are delivered. Beyond that, the company will continue to acquire 6.0% of payable gold for the life of the mine.

The arrangement also includes a sliding mechanism that adjusts Wheaton’s stream percentage if deliveries fall behind schedule. Beginning in 2033, if annual deliveries are short by 10,000 ounces or more relative to the agreed timetable, Wheaton’s entitlement will increase by 5% until production returns to expected levels. This clause is designed to protect Wheaton’s long-term cash flow while incentivizing Hemlo Mining Corp. to maintain operational momentum.

In addition to the gold stream, Carcetti is raising approximately $415 million in equity financing, with Wheaton agreeing to participate for up to the lesser of $50 million or 20% of the total raise. A $200 million bank acquisition facility rounds out the package, ensuring sufficient liquidity to finalize the purchase from Barrick Mining Corporation and fund subsequent investments in mine improvements.

The combined financing represents over $1 billion in available capital when including Wheaton’s existing $1 billion cash reserves and access to a $2 billion revolving term loan. This positions the company to not only support Carcetti’s acquisition but also pursue further streaming opportunities across the global mining sector.

How does this transaction impact Wheaton Precious Metals’ portfolio and long-term growth strategy?

The acquisition of a gold stream from Hemlo strengthens Wheaton Precious Metals’ already diversified portfolio, which spans gold, silver, and other precious metals. The company has built its business model around partnering with mining operators to provide upfront financing in exchange for the right to purchase a portion of future production at a fixed, discounted price. This strategy has proven resilient during commodity cycles, as it shields Wheaton from rising operating costs while giving it exposure to upside in gold and silver prices.

According to Wheaton, the Hemlo gold stream is expected to contribute an average of 20,000 ounces of attributable production annually for the first 10 years, with a life-of-mine average of over 17,000 ounces per year. The addition of Hemlo will boost Wheaton’s Proven and Probable gold reserves by approximately 0.25 million ounces, increase Measured and Indicated resources by 0.08 million ounces, and add 0.04 million ounces of Inferred resources.

From a strategic standpoint, this strengthens Wheaton’s Canadian footprint at a time when investors are increasingly attentive to geopolitical risk. With many mining companies balancing exposure between emerging markets and stable jurisdictions, expanding in Canada provides a counterweight to Wheaton’s other global operations. Furthermore, the inclusion of Hemlo’s brownfield exploration upside aligns with Wheaton’s focus on long-term optionality, giving it potential access to additional gold production if new resources are proven.

The company has also emphasized its commitment to environmental, social, and governance (ESG) standards, with Carcetti expected to comply with the Global Industry Standard on Tailings Management and the Towards Sustainable Mining Standard. This approach is designed to reassure investors who are increasingly scrutinizing ESG performance as a factor in mining sector valuations.

What are analysts and investors saying about the deal and how is Wheaton Precious Metals stock responding?

Analysts covering Wheaton Precious Metals Corp. (NYSE: WPM; TSX: WPM) have generally viewed the Hemlo financing as a constructive step in diversifying the company’s gold portfolio. Some market watchers suggested the deal underscores Wheaton’s ability to secure high-quality streaming assets in established jurisdictions, which could provide stable cash flows at a time when gold prices are showing resilience amid global macroeconomic uncertainty.

Investor sentiment has been cautiously optimistic. Shares of Wheaton Precious Metals have traded in a relatively stable band through early September 2025, with a year-to-date gain of roughly 7%, reflecting broader strength in the precious metals sector. The company’s market capitalization stands above $25 billion, positioning it among the largest streaming companies globally. Analysts noted that while the upfront $400 million commitment is substantial, Wheaton’s $1.0 billion in cash reserves and access to $2 billion in credit facilities reduce concerns about balance sheet strain.

In terms of stock ratings, several equity research firms have maintained buy or outperform recommendations on Wheaton, citing the transaction as accretive to long-term earnings per share and free cash flow. Others have taken a more cautious hold stance, noting that gold price volatility remains a key risk factor and that streaming returns depend on Hemlo’s ability to meet its production targets. Institutional flows into Wheaton stock have been positive in recent weeks, with some Canadian pension funds and U.S.-based asset managers modestly increasing exposure ahead of the deal’s closing in the fourth quarter of 2025.

How does this deal fit into the broader direction of Canadian gold mining and the growth of mid-tier players?

The Canadian gold sector has historically played a central role in global mining, with Ontario’s Hemlo district symbolizing both the challenges and rewards of mining in stable jurisdictions. The mine’s transfer from Barrick Mining Corporation to Carcetti Capital, backed by Wheaton Precious Metals, could signal a new era where mid-tier players increasingly assume control of long-standing assets from global giants.

For Wheaton Precious Metals, the transaction strengthens its reputation as a go-to partner for mining finance and further diversifies its revenue streams. The additional ounces from Hemlo may not transform the company’s scale overnight, but they contribute to steady, predictable growth while reinforcing Wheaton’s Canadian portfolio. Investors are likely to watch how quickly Hemlo Mining Corp. can translate new capital into production improvements and exploration success, as this will determine whether the deal ultimately enhances long-term shareholder value.

At a time when global gold demand remains resilient—supported by central bank buying, retail investment flows, and geopolitical uncertainty—Wheaton’s strategy of securing high-quality streams appears well aligned with market dynamics. If Carcetti successfully revitalizes Hemlo and uncovers new resources in the district, Wheaton could benefit from decades of additional production at favorable economics. The move underscores how streaming companies like Wheaton Precious Metals are shaping the financing future of mining while ensuring investors gain stable exposure to gold during periods of economic volatility.