REG - Wheaton Precious Met - Acquisition of Stream on Jervois Project

Wheaton Precious MetalsAnnouncement

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RNS Number : 2324Z  Wheaton Precious Metals Corp.  02 April 2026

 
 

 
 
 
 

Wheaton Precious Metals Announces Acquisition of a Gold and Silver Stream on
the Jervois Project Through a Partnership with KGL Resources

 

Vancouver, British Columbia - Wheaton Precious Metals™ Corp. ("Wheaton" or
the "Company") is pleased to announce that its wholly-owned subsidiary,
Wheaton Precious Metals International Ltd. ("WPMI") has entered into a
definitive Precious Metals Purchase Agreement (the "Gold and Silver Stream")
with a wholly-owned subsidiary of KGL Resources Limited ("KGL") for a portion
of the gold and silver produced at the Jervois Project located in Australia
(the "Project" or "Jervois").

 

"The Jervois project represents an important milestone for Wheaton as our
first streaming transaction in Australia, one of the world's leading mining
jurisdictions," said Haytham Hodaly, President and Chief Executive Officer of
Wheaton. "This is a fully permitted copper project, with significant
exploration potential, that is positioned to commence construction imminently.
As global efforts to transition to a low‑carbon economy accelerate,
responsibly produced critical metals such as copper, sourced from politically
stable jurisdictions, have never been more important, and we look forward to
supporting the KGL team with a precious metals stream which will provide
construction funding as they advance the Jervois Project into production."

 

 "We are delighted to secure this significant capital commitment from a
leading global precious metals streaming company as a major cornerstone
partner in our financing strategy for the Jervois Project." said Jeff Gerard,
Executive Chairman of KGL. "The immediate availability of the early deposit
payments ensures we can maintain our schedule, and, under the stewardship of
our new CEO Mr. Sam Strohmayr, we are now on the cusp of breaking ground on
Australia's next major copper mine."

 

Transaction Key Terms

(All values in US$ unless otherwise noted)

§ Gold and Silver Stream Upfront Consideration: WPMI will pay KGL total
upfront cash consideration of US$275 million (the "Deposit") subject to
certain customary conditions.

o  Two installments of US$16 million each will be made as early deposit
payments, once certain conditions are satisfied, and are expected to be paid
in the second and third calendar quarters of 2026.

o  The remaining balance of US$243 million will be paid in four equal
installments over the construction period as various conditions are satisfied.

§ Streamed Metal:

o  Gold Stream: WPMI will purchase 75% of the payable gold until a total of
45 thousand ounces ("Koz") has been delivered (the "First Gold Dropdown
Threshold"), at which point Wheaton will purchase 37.5% of the payable gold
until an additional 15 Koz has been delivered (the "Second Gold Dropdown
Threshold"), at which point WPMI will purchase 25% of the payable gold for the
life of mine.  Payable gold is calculated using a fixed payability factor of
90%.

o  Silver Stream: WPMI will purchase 75% of the payable silver until a total
of approximately 4.3 million ounces ("Moz") has been delivered (the "First
Silver Dropdown Threshold"), at which point Wheaton will purchase 37.5% of the
payable silver until an additional 1.7 Moz has been delivered (the "Second
Silver Dropdown Threshold"), at which point WPMI will purchase 25% of the
payable silver for the life of mine. Payable silver is calculated using a
fixed payability factor of 90%.

o  Each of the First Gold Dropdown Threshold and First Silver Dropdown
Threshold will be subject to adjustment if there are delays in deliveries
relative to an agreed schedule.

§ Production Profile(1): Attributable Gold and Silver Stream production is
forecast to average approximately 5.8 Koz of gold and 0.77 Moz of silver per
annum for the first five full years of production, and approximately 5.3 Koz
of gold and 0.59 Moz of silver per annum for the life of mine. The Jervois
Project is forecast to have a 10-year mine life based on reserves and
resources(1), with meaningful exploration potential that may extend the mine
life. First production is expected in the second half of 2027.

§ Production Payments: WPMI will make ongoing payments for the gold and
silver ounces delivered equal to 20% of the spot price of gold and silver.

§ Incremental Reserves and Resources(1): The Jervois Project will increase
Wheaton's total estimated Proven and Probable gold and silver reserves by 92
Koz and 9.2 Moz, Measured and Indicated gold and silver resources by 15 Koz
and 1.3 Moz and Inferred gold and silver resources by 21 Koz and 2.1 Moz.

 

1 Scheduled resources are in accordance with the February 10, 2025
Feasibility Study Update created under the 2012 JORC Code.

Other Considerations

·    WPMI will provide a cost overrun stream (the "COF Stream") of up to
$25 million, accessible before the fifth anniversary of the effective date and
subject to satisfaction of further conditions. If the COF Stream is exercised,
the initial silver stream percentage will increase from 75% to 90%, with
corresponding adjustments to the First Silver Dropdown Threshold and other
related terms.

·    The Gold and Silver Stream will include a customary completion test
based on expected production and mining rates.

·    In the event of a change of control of KGL prior to December 31,
2029, KGL will have the option to buy back one third of the stream, for an
amount that includes a pre-determined rate of return.

·    Wheaton has committed to participate in a future equity financing by
KGL in connection with funding the Jervois mine, for the lesser of up to (i)
AU$35 million and (ii) that number of new shares representing 20% of the
shares offered under the equity financing, where such equity financing is
completed by the first anniversary of the date of the PMPA, at KGL's election
and on commercial terms to be agreed (provided Wheaton's interest in KGL shall
not exceed 9.9%).

·    WPMI will obtain a right of first refusal on any future precious
metal streams, royalties, prepays or similar transactions with respect to the
Jervois Project.

·    KGL will provide WPMI with corporate guarantees, as well as
first-priority security interests on the Project and KGL corporate assets,
subject to permitted prior-ranking encumbrances and an agreed intercreditor
framework where project debt financing is incurred.

Financing the Transaction

The Company expects to fund the majority of the upfront payment from operating
cash flows as construction advances throughout 2027. Supported by strong
projected cash flows over the next five years, along with anticipated
production growth of approximately 50% by 2030, the Company believes it is
well positioned to meet its existing commitments while continuing to pursue
new growth opportunities.

Attributable Mineral Reserves and Mineral Resources - Jervois Project

 

 Gold Reserves & Resources
 Category   Tonnage  Grade   Contained Au
            Mt       Au g/t  koz
 Proven     3.1      0.29    29
 Probable   7.6      0.25    63
 P+P        10.8     0.26    92
 Measured   0.3      0.10    1
 Indicated  2.1      0.21    14
 M+I        2.4      0.20    15
 Inferred   4.6      0.14    21

 

 Silver Reserves & Resources
 Category   Tonnage  Grade   Contained Ag
            Mt       Ag g/t  Moz
 Proven     3.0      31.0    3.0
 Probable   7.4      26.3    6.2
 P+P        10.4     27.7    9.2
 Measured   0.1      19.1    0.1
 Indicated  1.1      36.7    1.3
 M+I        1.2      34.6    1.3
 Inferred   4.0      16.4    2.1

 

Notes on Mineral Reserves & Mineral Resources:

1.   Mineral Reserves and Mineral Resources have been estimated in
accordance with the 2014 Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards for Mineral Resources and Mineral Reserves and
National Instrument 43-101 - Standards for Disclosure for Mineral Projects
("NI 43-101").

2.   Mineral Reserves and Mineral Resources are reported above in millions
of metric tonnes ("Mt"), grams per metric tonne ("g/t"), thousands of
ounces of gold ("koz"), and millions of ounces of silver ("Moz").

3.   Qualified persons ("QPs"), as defined by the NI 43-101, for the
technical information contained in this document (including the Mineral
Reserve and Mineral Resource estimates) are:

a.   Ryan Ulansky, M.A.Sc., P.Eng. (Vice President, Technical Services);
and

b.   Jeremy Vincent, M.Sc., P.Geo. (Director, Geology and Resources),

both employees of the Company (the "Company's QPs").

4.   The Mineral Resources reported in the above tables are
exclusive of Mineral Reserves.

5.   Mineral Resources, which are not Mineral Reserves, do not
have demonstrated economic viability.

6.   Jervois Project Mineral Reserves are reported as of February 10,
2025.

7.   Jervois Project Mineral Reserves are reported above 0.71 percent copper
equivalent cut-off grade tonne for open-pit mining, above a 1.0 percent
copper equivalent cut-off grade for underground mining with backfill, and
above a 0.83 percent copper equivalent cut-off grade for underground mining
without backfill, all assuming $4.58 per pound copper, $2,400 per ounce gold,
and $30.00 per ounce silver.

8.   Jervois Project Mineral Resources are reported as of February 10, 2025.

9.   Jervois Project open-pit Resources are reported above a 0.35 percent
copper equivalent cut-off grade and underground Resources are reported above a
0.8 percent copper cut-off grade, all assuming $4.90 per pound copper,
$2,400 per ounce gold, and $32.00 per ounce silver.

10.  The Gold and Silver Stream provides that KGL will deliver gold and
silver equal to 75% of the payable production until 45,000/4,300,000 ounces
respectively are delivered after which the stream will reduce to 37.5% until
an additional 15,000/1,700,000 ounces respectively are delivered after which
the stream will reduce to 25% for the remaining life of the mine.

About KGL and the Jervois Project

KGL Resources Limited is an ASX-listed Australia mineral exploration and
development company, focused on developing and constructing the Jervois Copper
Project in the Northern Territory, Australia. The Project lies North-East of
the town of Alice Springs and is located in the Plenty River Basin, a sparsely
populated area in Central Australia's Northern Territory. Access to the
Project site is via the Plenty Highway and Lucy Creek Road. The Project is
fully-permitted with a recent Feasibility Study Update demonstrating
attractive economics, low capital intensity and strong operating margins.

 

For further information, please contact:

Emma Murray

Vice President, Investor Relations

Wheaton Precious Metals Corp.

Tel: 1-844-288-9878

Email: info@wheatonpm.com (mailto:info@wheatonpm.com)

 

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's Precious Metals Purchase Agreement ("PMPA")
counterparties. Forward-looking statements, which are all statements other
than statements of historical fact, include, but are not limited to,
statements with respect to:

·    the satisfaction of each party's obligations in accordance with the
Gold and Silver Stream;

·    the receipt by the Company of gold and silver production in respect
of the Jervois Project under the Gold and Silver Stream;

·    the future price of commodities;

·    the estimation of future production from the mineral stream interests
and mineral royalty interests currently owned by the Company (the "Mining
Operations") (including in the estimation of production, mill throughput,
grades, recoveries and exploration potential);

·    the estimation of mineral reserves and mineral resources (including
the estimation of reserve conversion rates and the realization of such
estimations);

·    the commencement, timing and achievement of construction, expansion
or improvement projects by Wheaton's precious metal purchase agreement
("PMPA") counterparties at Mining Operations or other payments under royalty
arrangements;

·    the payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance with PMPAs
and the receipt by the Company of precious metals and cobalt production or
other payments in respect of the applicable Mining Operations under PMPAs;

·    the ability of Wheaton's PMPA counterparties to comply with the terms
of a PMPA (including as a result of the business, mining operations and
performance of Wheaton's PMPA counterparties) and the potential impacts of
such on Wheaton;

·    future payments by the Company in accordance with PMPAs, including
any acceleration of payments;

·    the costs of future production;

·    the estimation of produced but not yet delivered ounces;

·    continued listing of the Common Shares on the LSE, NYSE and TSX;

·    any statements as to future dividends;

·    the ability to fund outstanding commitments and the ability to
continue to acquire accretive PMPAs;

·    projected increases to Wheaton's production and cash flow profile;

·    projected changes to Wheaton's production mix;

·    the ability of Wheaton's PMPA counterparties to comply with the terms
of any other obligations under agreements with the Company;

·    the ability to sell precious metals and cobalt production;

·    confidence in the Company's business structure;

·    the Company's assessment of taxes payable, and the Company's ability
to pay its taxes;

·    possible CRA domestic and international audits;

·    the Company's assessment of the impact of any tax reassessments;

·    the Company's climate change and environmental commitments; and

·    assessments of the impact and resolution of various legal and
tax matters, including but not limited to audits.

 

Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "projects",
"intends", "anticipates" or "does not anticipate", or "believes", "potential",
or variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to:

 

·    risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Gold and Silver Stream;

·    risks relating to the generation of sufficient cash flow to repay the
existing RCF and the new Term Loan;

·    risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt production
at acceptable prices or at all);

·    risks related to the Mining Operations (including fluctuations in the
price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated with
exploration, development, operating, expansions and improvement at the Mining
Operations, environmental and economic risks of the Mining Operations, and
changes in project parameters as Mining Operations plans continue to be
refined);

·    absence of control over the Mining Operations and having to rely on
the accuracy of the public disclosure and other information Wheaton receives
from the owners and operators of the Mining Operations as the basis for its
analyses, forecasts and assessments relating to its own business;

·    risks related to the uncertainty in the accuracy of mineral reserve
and mineral resource estimation;

·    risks related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the ability of the
companies with which the Company has PMPAs to perform their obligations under
those PMPAs in the event of a material adverse effect on the results of
operations, financial condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration potential;

·    risks relating to production estimates from Mining Operations,
including anticipated timing of the commencement of production by certain
Mining Operations;

·    Wheaton's interpretation of, or compliance with, or application of,
tax laws and regulations or accounting policies and rules, being found to
be incorrect or the tax impact to the Company's business operations being
materially different than currently contemplated, or the ability to pay such
taxes as and when due;

·    any challenge or reassessment by the CRA of the Company's tax filings
being successful and the potential negative impact to the Company's previous
and future tax filings;

·    risks in assessing the impact of the CRA Settlement;

·    risks related to any changes to the Income Tax Act (Canada) that may
result in a material change to the amount of future taxes payable;

·    counterparty credit and liquidity risks;

·    mine operator and counterparty concentration risks;

·    indebtedness and guarantees risks;

·    hedging risk;

·    competition in the streaming industry risk;

·    risks relating to security over underlying assets;

·    risks relating to third-party PMPAs;

·    risks relating to revenue from royalty interests;

·    risks related to Wheaton's acquisition strategy;

·    risks relating to third-party rights under PMPAs;

·    risks relating to future financings and security issuances;

·    risks relating to unknown defects and impairments;

·    risks related to governmental regulations;

·    risks related to international operations of Wheaton and the Mining
Operations;

·    risks relating to exploration, development, operating, expansions and
improvements at the Mining Operations;

·    risks related to environmental regulations;

·    the ability of Wheaton and the Mining Operations to obtain and
maintain necessary licenses, permits, approvals and rulings;

·    the ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting requirements;

·    lack of suitable supplies, infrastructure and employees to support
the Mining Operations;

·    risks related to underinsured Mining Operations;

·    inability to replace and expand mineral reserves, including
anticipated timing of the commencement of production by certain Mining
Operations (including increases in production, estimated grades and
recoveries);

·    uncertainties related to title and indigenous rights with respect to
the mineral properties of the Mining Operations;

·    the ability of Wheaton and the Mining Operations to obtain adequate
financing;

·    the ability of the Mining Operations to complete permitting,
construction, development and expansion;

·    challenges related to global financial conditions;

·    risks associated with sustainability-related matters;

·    risks related to fluctuations in commodity prices of metals produced
from the Mining Operations other than precious metals or cobalt;

·    risks related to claims and legal proceedings against Wheaton or the
Mining Operations;

·    risks related to the market price of the Common Shares of Wheaton;

·    the ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and experienced
personnel;

·    risks related to interest rates;

·    risks related to the declaration, timing and payment of dividends;

·    risks related to access to confidential information regarding Mining
Operations;

·    risks associated with multiple listings of the Common Shares on the
LSE, NYSE and TSX;

·    risks associated with a possible suspension of trading of Common
Shares;

·    equity price risks related to Wheaton's holding of long-term
investments in other companies;

·    risks relating to activist shareholders;

·    risks relating to reputational damage;

·    risks relating to expression of views by industry analysts;

·    risks related to the impacts of climate change and the transition to
a low-carbon economy;

·    risks associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining Operations;

·    risks related to ensuring the security and safety of information
systems, including cyber security risks;

·    risks relating to artificial intelligence;

·    risks relating to compliance with anti-corruption and anti-bribery
laws;

·    risks relating to corporate governance and public disclosure
compliance;

·    risks of significant impacts on Wheaton or the Mining Operations as a
result of an epidemic or pandemic;

·    risks related to the adequacy of internal control over financial
reporting; and

·    other risks discussed in the section entitled "Description of the
Business - Risk Factors" in Wheaton's Annual Information Form available on
SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) and Wheaton's Form 40-F
for the year ended December 31, 2025 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure").

 

Forward-looking statements are based on assumptions management currently
believes to be reasonable, including but not limited to:

 

·    that each party's obligations in accordance with the terms of the
Gold and Silver Stream will be satisfied;

·    that there will be no material adverse change in the market price of
commodities;

·    that the Mining Operations will continue to operate and the mining
projects will be completed in accordance with public statements and achieve
their stated production estimates;

·    that the mineral reserves and mineral resource estimates from Mining
Operations (including reserve conversion rates) are accurate;

·    that public disclosure and other information Wheaton receives from
the owners and operators of the Mining Operations is accurate and complete;

·    that the production estimates from Mining Operations are accurate;

·    that each party will satisfy their obligations in accordance with the
PMPAs;

·    that Wheaton will continue to be able to fund or obtain funding for
outstanding commitments;

·    that Wheaton will be able to source and obtain accretive PMPAs;

·    that the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;

·    that Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;

·    that expectations regarding the resolution of legal and tax matters
will be achieved (including CRA audits involving the Company);

·    that Wheaton has properly considered the application of Canadian tax
laws to its structure and operations and that Wheaton will be able to pay
taxes when due;

·    that Wheaton has filed its tax returns and paid applicable taxes in
compliance with applicable tax laws;

·    that the trading of the Common Shares will not be adversely affected
by the differences in liquidity, settlement and clearing systems as a result
of multiple listings of the Common Shares on the LSE, the TSX and the NYSE;

·    that the trading of the Company's Common Shares will not be
suspended;

·    the estimate of the recoverable amount for any PMPA with an indicator
of impairment;

·    that neither Wheaton nor the Mining Operations will suffer
significant impacts as a result of an epidemic or pandemic; and

·    such other assumptions and factors as set out in the Disclosure.

 

Although Wheaton has attempted to identify important factors that could cause
actual results, level of activity, performance or achievements to differ
materially from those contained in forward‑looking statements, there may be
other factors that cause results, level of activity, performance or
achievements not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate and even
if events or results described in the forward-looking statements are realized
or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on, Wheaton. Accordingly, readers should
not place undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included herein are
for the purpose of providing readers with information to assist them in
understanding Wheaton's expected financial and operational performance and may
not be appropriate for other purposes. Any forward-looking statement speaks
only as of the date on which it is made, reflects Wheaton's management's
current beliefs based on current information and will not be updated except in
accordance with applicable securities laws.

 

 

 

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