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(Alliance News) - Wheaton Precious Metals Corp on Wednesday said its wholly-owned subsidiary Wheaton Precious Metals International Ltd has agreed to buy a new silver stream on the Mineral Park mine in Arizona, US.
The Vancouver-based precious metals streaming company said the deal was with Waterton Copper Corp, a subsidiary of Waterton Copper LP, paying USD115 million in upfront cash over four tranches.
Wheaton Precious Metals is buying 100% of the payable silver from the project for the life of the mine.
It said the attributable production is forecast to average over 690,000 ounces of silver per year for the first five years of production and over 740,000 ounces for the life of the mine, with construction to be completed by the end of the first quarter of 2025.
Mineral Park is forecast to have a 12-year mine life, with the potential to expand to over 20 years.
Wheaton Precious Metals said it has around USD829 million of cash on hand as of June 30 to finance the deal, as well as providing flexibility to acquire additional accretive mineral stream interests.
"Wheaton is excited to bring Mineral Park back into our portfolio given our long history with the mine, particularly given the work Waterton Copper has done to optimize the operation," said Wheaton Precious Metals Chief Executive Officer Randy Smallwood.
"Our unique understanding of Mineral Park, and its potential, positions us well to assist Waterton Copper in bringing the mine back into production in a sustainable manner. As global efforts to transition to a low-carbon economy accelerate, critical metals, such as copper, that are produced responsibly within politically stable jurisdictions, have never been more important."
Waterton Copper Executive Chair Isser Elishis commented: "Waterton Copper is delighted to have Wheaton Precious Metals' support. Waterton is investing approximately USD600 million to optimise Mineral Park including significant capital investments in new primary crushers, secondary and pebble crushing circuits, and new higher-power [semi-autogenous grinding] mills, which are expected to result in decades of operational excellence."
Shares in Wheaton Precious Metals last traded at 3,593.99 pence each on Tuesday evening.
By Greg Rosenvinge, Alliance News reporter
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