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Allied Gold Announces $175 Million Streaming Agreement with Wheaton Precious Metals International Securing Financing for Kurmuk Project
TORONTO, Dec. 5, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (OTCQX: AAUCF) ("Allied" or the "Company") is pleased to announce that it has entered into fin
About this update from Allied Gold Corporation
[{"type":"text","content":" TORONTO, Dec. 5, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (OTCQX: AAUCF) (\"Allied\" or the \"Company\") is pleased to announce that it has entered into final documentation for a streaming transaction (the \"Stream Transaction\") with Wheaton Precious Metals International Ltd. (\"WPMI\"), a wholly-owned subsidiary of Wheaton Precious Metals Corp., (\"Wheaton\"). Under the terms of the streaming agreement, Allied will receive an aggregate $175 million upfront cash payment (the \"Advance Amount\") to support the funding of its growth strategy underpinned by the development of its low-cost, fully permitted, and highly prolific Kurmuk project in Ethiopia. The Stream Transaction with WPMI strongly endorses the quality and significant value of the Kurmuk project, and the ongoing execution and exploration efforts being carried out by the Company. This Stream Transaction further advances the Company's financial strategy during its transformative growth phase at an attractive cost of capital, contributing to de-risking Kurmuk's execution with a comprehensive financing package supporting the advancement of initiatives to unlock further upside potential and maximize shareholder value. \"We are delighted to partner with Wheaton on this streaming financing. This began as a multi-party process although it soon became apparent to us that Wheaton would be our partner of choice. They conducted detailed and extensive diligence, were supportive of our efforts, worked with us in evaluating and considering optimization opportunities and recognized the inherent value of our Kurmuk project, a value that we believe significantly exceeds the value implied in our share price. We take our sustainability programs seriously, and it was a delight to see Wheaton not only support these programs but provide suggested improvements. We also welcome Wheaton as a shareholder with a share position acquired in the Company's recent overnight marketed equity financing.\" commented Peter Marrone, Chairman and CEO. \"The stream financing now allows us to complete the gold prepay which is the final component of our planned comprehensive financing package for the development of the Kurmuk project. The gold prepay is expected to be led by the lending syndicate for the Company's revolving credit facility with proceeds available to Allied following the completio...