Wheaton Precious Metals Announces the Acquisition of a Gold Stream from Allied Gold's Kurmuk Project

Core Viewpoint - Wheaton Precious Metals Corp. has entered into a Precious Metals Purchase Agreement with Allied Gold Corporation for the Kurmuk Project in Ethiopia, marking a significant step in advancing the construction of the first commercial gold mine in the country [1][2]. Transaction Key Terms - Wheaton Precious Metals International Ltd. will pay Allied a total upfront cash consideration of US $175 million in four equal installments during construction [3]. - Wheaton will purchase 6.7% of the payable gold until 220,000 ounces are delivered, after which the percentage will decrease to 4.8% for the life of the mine [3][9]. - The project is expected to average over 16,000 ounces of gold production per year for the first ten years, with first production anticipated in mid-2026 [3][7]. Production Profile - The Kurmuk Project is forecasted to have an 11-year mine life based on reserves, with significant exploration potential [3][7]. - The project aims for an average annual gold production of approximately 270,000 ounces over the first five years and over 240,000 ounces annually over a 10-year mine life, with all-in sustaining costs around US$ 1,000 per ounce [7]. Financial Position - As of September 30, 2024, Wheaton had approximately US $694 million in cash and access to a$ 2 billion revolving term loan, positioning the company well to fund the acquisition and other commitments [5]. Environmental and Social Governance - Allied is expected to comply with various international standards on environmental and social sustainability, indicating a commitment to ESG practices [4]. Project Overview - The Kurmuk Project is located in the Benishangul-Gumuz region of Ethiopia and involves a two-phase development plan with a total capital investment of approximately US$500 million [7].