Under the proposed three-year mining services contract, Barminco will bring industry-leading technology and productivity to Hemlo in support of Barrick's goal to modernise and improve the performance of the mine and establish it as a tier two asset within its group.

Barminco's scope of work includes undertaking mine development, production and haulage, using Barrick's mining equipment.

The company expects the contract to start next month and employ more than 300 people.

Hemlo has produced more than 21 million ounces of gold over 30 years of operation.

It is expected to produce 200,000-220,000oz this year at all-in sustaining costs of US$1200-1250 an ounce.

Perenti managing director Mark Norwell said the contract award was another significant step in the company's international growth strategy to enter attractive and stable mining jurisdictions.

"This is Barminco and Perenti's first significant contract in North America and builds on our regional growth capabilities, after expanding into Botswana last year with an $800 million contract," he said.

Perenti underground CEO Paul Muller said the company would work with Barrick to improve Hemlo's performance and secure its future.

Shares in Perenti were down 12.4% to a 52-week low of $1.095, in line with the broader market sell-off.