Barrick options Midland’s Quebec gold project

Barrick Mining (TSX: ABX) (NYSE: B) has entered into an option agreement with Canadian gold junior Midland Exploration (TSXV: MD) for its Lewis property in Quebec.

Under the terms, Barrick can acquire up to 75% of the project by making $750,000 (US$536,000) in staged cash payments and spending $12 million on exploration by the end of 2032. Barrick, which sold its last Canadian mine in September, is to serve as the project’s operator.

An initial 51% interest can be earned by paying $250,000 cash to Midland and funding exploration work of at least $3 million by 2028.

Following the initial earn-in, the companies may form a joint venture. Barrick will then have the option to earn a further 9% by 2030 (C$200,000 cash and C$1.5 million expenditure), and another 15% by 2032 ($300,000 cash and $7.5 million expenditure).

Near Nelligan

Acquired by Midland in 2020, the Lewis property consists of 154 exclusive exploration rights covering 86 sq. km of Quebec’s Abitibi region. It is located about 60 km northwest of Iamgold’s (TSX: IMG; NYSE: IAG) Nelligan deposit, which hosts nearly 103 million indicated tonnes grading 0.85 gram gold per tonne for 3.12 million oz. of gold.

Barrick signed a similar earn-in agreement with Midland for the Patris gold property in Abitibi in May 2023. The major can acquire 51% by paying $392,500 and funding at least $4 million in exploration over the first four years, followed by additional cash and work commitments to reach 60% and then 75%. Midland and Barrick started a drilling program on Patris in mid-2024.

Major partners

The projects are part of several in Midland’s Quebec-focused portfolio with majors as partners. Others involve BHP (NYSE, LSE, ASX: BHP), Rio Tinto (NYSE, LSE, ASX: RIO), Centerra Gold (TSX: CG; NYSE: CGAU) and Agnico Eagle Mines (TSX, NYSE: AEM).

Shares of Midland Exploration closed flat at 44¢ apiece on Monday in Toronto, valuing the company at $47.3 million. They’ve gained 44% this year. 

For Barrick, the transaction comes amid a strategic shift towards North America. Recently, its interim CEO Mark Hill stated that the company considers the region key to its future growth.