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Wheaton Precious Metals Announces Acquisition of Gold Stream from Lumina Gold's Cangrejos Project
VANCOUVER, BC, May 16, 2023 /CNW/ - Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to announce that its wholly-owned subsidiary,
About this update from Wheaton Precious Metals Corp
[{"type":"text","content":" VANCOUVER, BC, May 16, 2023 /CNW/ - Wheaton Precious Metals™ Corp. (\"Wheaton\" or the \"Company\") is pleased to announce that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd. (\"Wheaton International\") has entered into a definitive Precious Metal Purchase Agreement (the \"Gold Stream\") with Lumina Gold Corp. (\"Lumina\") (TSXV: LUM) in respect to its 100% owned Cangrejos gold-copper project located in El Oro Province, Ecuador (the \"Project\" or \"Cangrejos\"). Cangrejos is forecast to be a high-margin mine in the lowest half of the cost curve with a 26-year mine life1. \"The Cangrejos Project is an excellent addition to Wheaton's existing portfolio of high-quality, low-cost assets as it should provide accretive, long-term growth as well as significant exploration potential,\" said Randy Smallwood, Wheaton's President and Chief Executive Officer. \"We welcome the opportunity to work with the team at Lumina who have done an outstanding job at working to de-risk the Project and advancing it towards construction. As with any transaction Wheaton enters into, responsible and sustainable mining practices are paramount, and Wheaton looks forward to supporting Lumina both financially as they construct Cangrejos and with their ongoing comprehensive community engagement efforts.\" Transaction Details (All values in US$ unless otherwise noted) Upfront Consideration: Wheaton International will pay Lumina total upfront cash consideration of $300 million (the \"Deposit\"), $48 million of which is available pre-construction (the \"Early Deposit\"). The payment schedule for the Early Deposit and Deposit are as follows: The Early Deposit of $48 million is comprised of four components: 1) $12 million on closing; 2) $10 million 6 months after close; 3) $15 million 12 months after close; and 4) an $11 million tranche that can be drawn upon for committed acquisition of surface rights. The remaining $252 million will be payable in staged equal installments during construction, subject to various customary conditions being satisfied. Streamed Metal: Under the Gold Stream, Wheaton International will purchase 6.6% of the payable gold from the Project until 700,000 ounces (\"oz\") of gold has been delivered, at which point the stream will be reduced to 4.4% of the payable gold production for the life of the mine. Production Pr...