Hemlo Mining buys back royalty stake in Ontario gold mine
Hemlo Mining Corp. [HMMC-TSXV], a new Canadian gold producer, has purchased a 1.5% net smelter return royalty at its Hemlo Gold Mine Complex near Marathon, Ontario.
The acquisition and termination of the royalty consolidates the company’s interest over the Hemlo land package, improving economic leverage to potential exploration success and future production growth. The company views the consolidation of royalty interests within its land package as an accretive strategy to support exploration investment and long-term shareholder value. The purchased royalty covers 17 mineral claims associated with he past-producing David Bell Mine, which is located approximately 1.0 kilometre east of the company’s current operations.
The company has identified multiple exploration targets at the David Bell property, which will be tested through the company’s 2026 exploration drilling program. The David Bell mine produced approximately 4.2 million ounces of gold from 1985 to 2013, during a period when gold prices were approximately US$600 an ounce.
On Thursday, Hemlo shares eased 2.16% or $0.15 to $6.79. The shares trade in a 52-week range of $7.20 and $3.63.
News of the royalty acquisition comes after Hemlo recently announced the successful completion of the first gold pour at its Hemlo Gold Mine since acquiring the operation from Barrick Mining Corp. [ABX-TSX, B-NYSE] on November 26, 2025.
Hemlo Mining, (previously Carcetti Capital Corp.) recently closed the acquisition of the Hemlo Gold Mine from Barrick for an aggregate consideration of US$1.1 billion. The fabled mine is located 35 kilometres east of Marathon, Ont., and has produced approximately 25 million ounces of gold from both underground and open pit operations since production began in 1985.
The company is looking to establish itself as a leading Canadian mid-tier growth-focused gold producer, with an immediate focus on maximizing the value of the Hemlo mine’s infrastructure, while unlocking new opportunities via an aggressive brownfields exploration program.
The infrastructure includes a 10,000 tonne-per-day mill, a modern underground complex accessed via shaft and ramp system, with 6,000 tonne-per day hoisting capacity plus additional ramp haulage.
The company’s corporate presentation points to a strong operational history and outlook with a 14-year remaining mine-life. A 2025 technical report highlights average annual gold production of 138,000 ounces at an all-in-sustaining cost of US$1,395 an ounce.
The inaugural pour produced approximately 6,704 ounces of gold, representing one of Hemlo’s largest single pours and underscoring the continuity and resilience of mining and processing operations through the ownership transition. Plant recoveries, throughput, and metallurgical recoveries remain fully aligned with the company’s operating plan.
Source: Resource World Magazine – Read More