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MetalCorp flags force majeure from Barrick Gold

Barrick Gold has declared force majeure regarding its option agreement at MetalCorp’s Hemlo East property in Ontario, the junior said on Friday.
MetalCorp flags force majeure from Barrick Gold MetalCorp flags force majeure from Barrick Gold MetalCorp flags force majeure from Barrick Gold MetalCorp flags force majeure from Barrick Gold MetalCorp flags force majeure from Barrick Gold

Barrick Gold’s nearby Hemlo mine in Ontario

Staff reporter

Barrick can earn up to 80% of Hemlo East, adjacent to the major's operating Hemlo gold mine, under a deal announced a year ago.

MetalCorp said Barrick was advised of First Nations claims when preparing to file submissions for an exploration permit.

"As a result, on November 25, 2021, Barrick gave notice to MetalCorp of the occurrence of a ‘force majeure' based on those claims, including a claim of Aboriginal title, which claims prevent and make unattainable, on a practical basis in circumstances which are reasonably beyond Barrick's control, delaying the performance by Barrick of its obligations under the earn-in agreement," MetalCorp said.

It said the notice stated the delay would extend the timeframe for Barrick to perform its obligations under the earn-in.

Barrick is operator during the earn-in period.

Its Hemlo mine is expected to produced 200,000-220,000 ounces of gold this year.

MetalCorp shares (TSXV: MTC), which have spanned C3-7c over the past year, closed up 28.6% to 4.5c to value it at $5.4 million (US$4.2 million).