Caldas Gold Announces Closing of the Precious Metals Stream With Wheaton Precious Metals on the Marmato Project

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[{"type":"text","content":" TORONTO, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Caldas Gold Corp. (TSX-V: CGC; OTCQX: ALLXF) announced today that it has entered into a definitive Precious Metals Purchase Agreement (the “Precious Metals Stream”) with Wheaton Precious Metals International Ltd. (“Wheaton International”), a wholly-owned subsidiary of Wheaton Precious Metals™ Corp., in respect to the Company’s Marmato Project located in Colombia. The Marmato Project comprises an existing operating mine (the “Upper Mine”) and the Marmato Deeps Zone (“MDZ”) development, both of which are covered by the Precious Metals Stream. Scotiabank acted as financial advisor to Caldas Gold. Wheaton International will purchase 6.5% of the gold production and 100% of the silver production from the Marmato Project until 190,000 ounces of gold and 2.15 million ounces of silver have been delivered, after which the stream drops to 3.25% of the gold production and 50% of the silver production for the life of mine. Under the Precious Metals Stream, Wheaton International will make an upfront deposit payment in cash of US$110 million, US$38 million of which is payable within six months, subject to customary conditions, and the remaining portion of which is payable during the development and construction of the MDZ project, subject to receipt of required permits and licenses, sufficient financing having been obtained to cover total expected capital expenditures and other customary conditions. In addition, Wheaton International will make ongoing payments equal to 18% of the spot gold and silver prices until the uncredited portion of the upfront payment is reduced to zero, and 22% of the spot gold and silver prices thereafter. The Precious Metals Stream is effective July 1, 2020. The upfront deposit will be used by the Company to fund the advancement of the development and construction of the MDZ project. In connection with the Precious Metals Stream, the Company and its subsidiaries have provided security in favour of Wheaton International in respect of their obligations under the Precious Metals Stream, including, a first ranking general security agreement over substantially all properties and assets of the Company and its subsidiaries, security over the mining rights comprising the Marmato Project, and a first ranking share pledge over the shares of each of the subsidiaries of the Compan...

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