Business
Capstone Announces Gold Stream with Wheaton Precious Metals; Enters into a Binding Port Deal, and Consolidates 100% Ownership in Santo Domingo
VANCOUVER, British Columbia / Mar 25, 2021 / Business Wire / Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) is pleased to announce that it has ent
About this update from Capstone Copper Corp.
[{"type":"text","content":"VANCOUVER, British Columbia / Mar 25, 2021 / Business Wire / Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) is pleased to announce that it has entered into three separate agreements to advance Santo Domingo in Region III, Chile, (\"Santo Domingo\" or “the Project\") as described in the Santo Domingo Project, Region III, Chile NI 43-101 Technical Report and Preliminary Economic Assessment1 (the “Technical Report”), to construction targeted by year-end 2021. HIGHLIGHTS OF THREE SEPARATE TRANSACTIONS 1. Gold Stream Agreement with Wheaton Precious Metals for $290 Million Capstone and Wheaton Precious Metals International Ltd. (“Wheaton”) have entered into a precious metals purchase agreement for the production of gold from the Project (the “Gold Stream Agreement”). Capstone will receive an upfront deposit of $30 million (the “Early Deposit”) and additional deposits totalling $260 million for total consideration of $290 million (“the Deposit”). The Early Deposit will be advanced on closing for the initial payment of the KORES minority interest. Wheaton will receive 100% of the gold production from the Project until 285,000 ounces have been delivered, thereafter dropping to 67% of the gold production. Wheaton will make ongoing payments equal to 18% of the spot gold price, until the Deposit has been reduced to zero, thereafter increasing to 22% of the spot gold price upon delivery. 2. Share Purchase Agreement to Consolidate 100% Ownership of Santo Domingo Capstone has entered into a Share Purchase Agreement (the “SPA”) with Korea Chile Mining Corporation, a wholly owned subsidiary of Korea Resources Corporation (collectively, “KORES”) to purchase KORES’ 30% ownership interest in Santo Domingo for $120 million in three cash payments over the next four years including an initial payment of $30 million. The SPA enables consolidation of 100% ownership in Santo Domingo which provides greater flexibility to Capstone’s strategic process in securing a partner. 3. Santo Domingo Port Framework Agreement – Puerto Ventanas to Design, Build, Operate & Finance Capstone has entered into a framework agreement with Puerto Abierto S.A., a wholly owned subsidiary of Puerto Ventanas S.A. (subsidiary of Sigdo Koppers S.A., collectively “Puerto Ventanas” or “PVSA”), under which Puerto Ventanas assumes responsibility for financing, construc...