Wheaton Precious Metals has reached an agreement with certain entities advised by Orion Resource Partners to acquire existing streams pertaining to Ivanhoe Mines’ Platreef platinum-group metals (PGM)-nickel project and BMC Minerals’ Kudz Ze Kayah project.
Besides, Wheaton International, a fully owned subsidiary of Wheaton Precious Metals, has signed a new precious metals purchase agreement for a gold stream associated with Dalradian Gold’s Curraghinalt gold project in Northern Ireland.
Under the terms of the agreements, Wheaton Precious Metals will pay a total upfront cash consideration of $530m.
The company will pay $450m to Orion Resource Partners on the closing of the acquisition of the Platreef and Kudz Ze Kayah streams. An additional $5m contingency payment will be made in respect of the Kudz Ze Kayah stream.
An affiliate of Dalradian Gold will receive $20m on an early deposit basis for the Curraghinalt gold stream, with an additional $55m being paid during the construction of the project. It is subject to various customary conditions.
Wheaton Precious Metals CEO and president Randy Smallwood said: “The acquisition of these diverse, high-quality streams fits seamlessly into our portfolio of high-margin, low-cost assets, with near-term production from Platreef significantly adding to our already robust growth profile.”
According to the terms of the Platreef project gold stream agreement, Wheaton International will acquire 62.5% of the payable gold until a total of 218,750 ounces of gold has been delivered to the company.
Wheaton International will then be entitled to buy 50% of the payable gold production until a total of 428,300 ounces has been delivered to it and a further 3.12% of the payable gold production once certain conditions are met.
Located nearly 280km north-east of Johannesburg, in the Limpopo province of South Africa, the Platreef project is fully permitted and currently under construction. Commercial production at the project is expected in Q4 2024.
Under the Kudz Ze Kayah streams, Wheaton Precious Metals will buy staged percentages of payable gold and payable silver ranging from 6.875% to 7.375% until 330,000 ounces of gold and 43.3 million ounces of silver are produced and delivered.
The Kudz Ze Kayah project is situated in the northern Pelly Mountains, 115km southeast of the Ross River in south central Yukon, Canada.
Wheaton International will also acquire 3.05% of the payable gold until 125,000 ounces of gold has been delivered. At this point, the stream will be reduced to 1.5% of the payable gold production for life of mine.
Subject to terms and conditions, the stream transactions are expected to be completed within Q4 2023 or Q1 2024.
