REG - Wheaton Precious Met - Agreement to Terminate Keno Hill Silver Stream

Wheaton Precious MetalsAnnouncement

05/07/2022 12:30

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RNS Number : 3925R  Wheaton Precious Metals Corp.  05 July 2022

July 5, 2022
Vancouver, British Columbia
 
TSX | NYSE | LSE: WPM

 

WHEATON PRECIOUS METALS ENTERS INTO AGREEMENT TO TERMINATE ITS EXISTING Silver
STREAM in the Keno Hill silver district

 

Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is announcing
that it has entered into a definitive agreement with Hecla Mining Company
("Hecla") (NYSE:HL) to terminate its silver stream on Alexco Resource Corp.'s
("Alexco") (NYSE American/TSX: AXU) Keno Hill Silver District ("Keno Hill") in
the Yukon, Canada for US$135 million.

 

"The termination of the Keno Hill stream further demonstrates our ability to
strategically identify opportunities both inside and outside of our portfolio
that create value for our shareholders and positions Wheaton to continue to
have one of the strongest balance sheets in the industry. While we firmly
believe that Keno Hill is a high-quality district with significant exploration
potential, given recent announcements, the ability to obtain an immediate
return on the termination of the stream was too compelling to ignore," said
Randy Smallwood, Wheaton's President and Chief Executive Officer. "We believe
Hecla is well positioned to effectively mine Keno Hill and maximize its full
potential."

 

On July 5, 2022, Hecla announced its intention to acquire Alexco through a
definitive arrangement agreement, which remains subject to shareholder and
regulatory approvals. The termination of the Keno Hill silver stream is
conditional upon Hecla completing its announced proposed acquisition of Alexco
together with other customary approvals.

 

As consideration for the termination of the Keno Hill silver stream, Hecla
will issue to Wheaton $135 million of Hecla common shares. Subsequent to the
closing of the termination of the Keno Hill silver stream, Wheaton will own
approximately 5.6% of Hecla's issued and outstanding common shares. The exact
number of Hecla common shares to be issued will be calculated immediately
before the closing date.

 

Hecla is the largest primary silver producer in the United States. In addition
to operating mines in Alaska, Idaho and Québec, Canada, the Company owns a
number of exploration projects in world-class silver and gold mining districts
throughout North America.

 

The closing of the transaction with Hecla, including the termination of the
Keno hill stream, is subject to Hecla closing its acquisition of Alexco and
other customary conditions.

 

For further information, please contact:

 

Patrick Drouin

Investor Relations

Wheaton Precious Metals Corp.

Tel: 1-844-288-9878

Email: info@wheatonpm.com

Website: www.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, the
termination of the Keno Hill silver stream to Hecla for $135 million and the
satisfaction of each party's obligations in accordance with definitive
documentation relating to the termination of the Keno Hill silver stream.
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 associated with any specific risks relating
to the termination of the Keno Hill silver stream and the satisfaction of each
party's obligations in accordance with the terms of the definitive
documentation relating to the termination of the Keno Hill silver stream, 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.sedar.com (http://www.sedar.com) , and in Wheaton's Form 40-F for the year
ended December 31, 2021 and Form 6-K filed March 10, 2022 both available on
EDGAR at www.sec.gov (http://www.sec.gov) , as well as the risks set out in
Wheaton's management's discussions and analysis for the period ended December
31, 2021 available on SEDAR and EDGAR (together, the "Disclosure").
Forward-looking statements are based on assumptions management currently
believes to be reasonable, including (without limitation): the receipt of $135
million from Hecla and the satisfaction of each party's obligations in
accordance with the terms of the definitive documentation relating to the
termination of the Keno Hill silver stream, and such other assumptions and
factors as set out in the Disclosure. 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. 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. 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.

 

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