- Top streaming company Wheaton Precious Metals (TSX:WMP) purchased a 1.5 per cent royalty on Spanish Mountain Gold’s (TSXV:SPA) eponymous project in British Columbia for US$55 million in cash
- Spanish Mountain is advancing towards its goal of building the next gold mine in British Columbia’s Cariboo Gold Corridor
- Spanish Mountain Gold stock has added 92.86 per cent year-over-year but only 3.85 per cent since 2021
Top streaming company Wheaton Precious Metals (TSX:WMP) purchased a 1.5 per cent royalty on Spanish Mountain Gold’s (TSXV:SPA) eponymous project in British Columbia for US$55 million in cash.
The Spanish Mountain gold project’s 2025 preliminary economic assessment estimates an after-tax net present value of C$1.02 billion, reflecting average annual production of 122,000 ounces of gold over a 24.5-year mine life.
Wheaton will issue payments in three installments, including US$22.5 million over the next few weeks, US$12.5 million upon the completion of 60,000 metres of drilling at the project, and US$20 million upon Environmental Assessment Act (British Columbia) approval for mine construction, development and operation.
Spanish Mountain may repurchase one third of the royalty if it undergoes a change of control prior to the earlier of a completion test based on mine throughput or December 31, 2030. Additionally, the company must increase the royalty by 0.15 per cent or pay Wheaton US$6 million if the completion test isn’t finalized by April 1, 2030.
National Bank Financial acted as financial advisor to Spanish Mountain during the transaction.
Leadership commentary
“We are thrilled to partner with Wheaton. Entering into the definitive financing agreement propels the Spanish Mountain gold project feasibility study forward, which the company aims to complete in 18 months, enabling a build decision in 2028. This financing secures the company’s vision and strategy as an emerging precious metals developer in the Tier 1 Cariboo District, BC Canada,” Peter Mah, director, president and chief executive officer (CEO) of Spanish Mountain Gold, said in Tuesday’s news release.
“Wheaton is pleased to support the advancement of Spanish Mountain, a long‑life gold project in British Columbia, a jurisdiction we know well. The project’s scale and long‑term potential align with our disciplined approach to growth in established mining jurisdictions,” added Haytham Hodaly, president and CEO of Wheaton Precious Metals.
About Spanish Mountain Gold
Spanish Mountain Gold is advancing towards its goal of building the next gold mine in British Columbia’s Cariboo Gold Corridor.
The junior gold stock (TSXV:SPA) is up by 8 per cent trading at C$0.27 as of 9:31 am ET. The stock has added 92.86 per cent year-over-year but only 3.85 per cent since 2021.
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