Wheaton Precious Metals Corp. (WPM) Unit Commits $275M to Secure Gold Supplies in Australia
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the best gold mining companies to buy with high upside potential. On April 1, Wheaton Precious Metals Corp. (NYSE:WPM) subsidiary Wheaton Precious Metals International entered into a Precious Metals Purchase Agreement.
The agreement with a wholly owned subsidiary of KGL Resources Limited concerns a portion of the gold and silver produced at the Jervois Project in Australia. Under the terms of the agreement, the unit is to pay KGL $275 million in total upfront cash, in two installments of $16 million each, and the remaining $243 million in four equal installments. The company is to finance the majority of the upfront payment through operating cash flows.
In return, Wheaton is entitled to the purchase of 75% of payable gold until 45,000 ounces and 37.5% until an additional 15,000 ounces are delivered. Wheaton will also purchase 75% of payable silver until 4.3 million ounces are delivered, and then 37.5% until an additional 1.7 million ounces are delivered.
“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,” said Haytham Hodaly, President and Chief Executive Officer of Wheaton.
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the world’s largest precious metals companies. It provides upfront capital to mining partners to build or expand mines, and in return, secures the right to purchase a percentage of future silver, gold, palladium, and cobalt production at fixed, low costs.
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