HEMLO OPERATION, OPTIONS 80% TO BARRICK

MetalCorp Skyrockets 260% as Grants Barrick 80% Option on Hemlo East Property

10:50 AM EST, 11/20/2020 (MT Newswires) -- MetalCorp Ltd. (MTC.V) at last look shot up 260% after saying Friday that it granted Barrick Gold Corp. (ABX.TO) an option to acquire an 80% stake in the Hemlo East gold property in Ontario.

MetalCorp said Hemlo East, which has produced over 21 million ounces of gold to date, is adjacent to Barrick's Williams and David Bell gold mines in Ontario.

To acquire the stake, Barrick must pay $3 million, spend $4.5 million and deliver a National Instrument 43-101-compliant technical report on the project within three years.

During the earn-in period, Barrick will operate and manage all exploration programs at Hemlo East. After completion of the earn-in, Barrick and MetalCorp will form an 80/20 joint venture that will hold the property. Dilution of a stake below 10% will result in the conversion of the interest to a 2% net smelter royalty.

Barrick may withdraw from the agreement at any time as long as it has made the initial $3 million payment and has spent $700,000 on the project.

Price: 0.09, Change: +0.07, Percent Change: +260.00