14th Dec 2021 19:18
Wheaton Precious Metals Corp - Vancouver, Canada-based precious metals streaming company - Agrees to acquire gold stream from New Gold Inc on the Blackwater gold project in British Columbia, Canada, and a silver stream from Artemis Gold Inc for USD441 million in total.
Wheaton will pay USD300 million to New Gold, and USD141 million to Artemis Gold. The New Gold payment will be made as soon as the agreement is completed, while the Artemis payment will be paid over the construction of the Blackwater project.
Payment will be paid from cash resources and debt under Wheaton's USD2 billion revolving term loan.
Wheaton will be entitled to receive 8% of gold production until 279,908 ounces is delivered, after which it will drop to 4%. For the silver stream, the company will receive 50% of payable silver output until 17.8 million ounces, thereafter dropping to 33%.
"The acquisition of the gold and silver streams on the Blackwater Project further enhances and diversifies Wheaton's existing portfolio of low-cost, high-quality, long-life mines. With strong ESG commitments at every stage of development, compelling economics and significant exploration upside potential, Blackwater incorporates many of the attributes we seek for accretive growth," says Chief Executive Officer Randy Smallwood.
Current stock price: 3,020.0 pence, down 3.4% on Tuesday
Year-to-date change: down 3.6%
By Dayo Laniyan; [email protected]
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