TIDMWPM
RNS Number : 4969E
Wheaton Precious Metals Corp.
06 November 2020
November 5, 2020 TSX: WPM
Vancouver, British Columbia NYSE: WPM
LSE: WPM
WHEATON PRECIOUS METALS announces Closing of the precious metals
stream with caldas gold on the marmato project
Wheaton Precious Metals(TM) Corp. ("Wheaton" or the "Company")
is pleased to announce that its wholly-owned subsidiary, Wheaton
Precious Metals International Ltd. ("Wheaton International") has
entered into a definitive Precious Metals Purchase Agreement (the
"Precious Metals Stream") with Caldas Gold Corp. ( "Caldas Gold")
(TSX-V: CGC) in respect to the Marmato Project located in Colombia.
The Marmato Project comprises an operating Upper Mine and the
Marmato Deeps Zone ("MDZ") development, both of which are covered
by the Precious Metals Stream.
Wheaton International will purchase 6.5% of the gold production
and 100% of the silver production until 190,000 ounces of gold and
2.15 million ounces of silver have been delivered, after which the
stream drops to 3.25% of the gold production and 50% of the silver
production for the life of mine. Under the proposed Precious Metals
Stream, Wheaton International will pay a total cash consideration
of US$110 million, US$38 million of which is payable within six
months subject to customary conditions, and the remaining portion
of which is payable during the construction of the MDZ project
subject to receipt of required permits and licenses, sufficient
financing having been obtained to cover total expected capital
expenditures, and other customary conditions. In addition, Wheaton
International will make ongoing payments equal to 18% of the spot
gold and silver price until the uncredited portion of the upfront
payment is reduced to zero, and 22% of the spot gold and silver
price thereafter. The Precious Metals Stream is effective July 1,
2020.
Caldas Gold is committed to supporting the communities in which
it operates. As part of the Precious Metals Stream, Caldas Gold has
agreed to provide funding through its ESG initiatives to support
the local communities around the Marmato Project.
For further information, please contact:
Patrick Drouin
Senior Vice President, Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's precious metals purchase agreement (" PMPA")
counterparties. Forward-looking statements, which are all
statements other than statements of historical fact, include, but
are not limited to, payment by Wheaton International of US$110
million to Caldas and the satisfaction of each party's obligations
in accordance with the Precious Metals Stream agreement, the
receipt by Wheaton International of silver and gold production in
respect of the Marmato Project, the future price of commodities,
the estimation of future production from mineral stream interests
owned by Wheaton (the "Mining Operations") (including in the
estimation of production, mill throughput, grades, recoveries and
exploration potential), the estimation of mineral reserves and
mineral resources (including the estimation of reserve conversion
rates) and the realization of such estimations and the
commencement, timing and achievement of construction, expansion or
improvement projects by Wheaton's PMPA counterparties at Mining
Operations. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "projects", "intends",
"anticipates" or "does not anticipate", or "believes", "potential",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to risks associated with any
specific risks relating to the satisfaction of each party's
obligations in accordance with the terms of the Precious Metals
Stream agreement, fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt
production at acceptable prices or at all), the Mining Operations
(including fluctuations in the price of the primary or other
commodities mined at such operations, regulatory, political and
other risks of the jurisdictions in which the Mining Operations are
located, actual results of mining, risks associated with the
exploration, development, operating, expansion and improvement of
the Mining Operations, environmental and economic risks of the
Mining Operations, and changes in project parameters as plans
continue to be refined), and other risks discussed in the section
entitled "Description of the Business - Risk Factors" in Wheaton's
Annual Information Form available on SEDAR at www.sedar.com , and
in Wheaton's Form 40-F for the year ended December 31, 2019 and
Form 6-K filed March 11, 2020 both available on EDGAR at
www.sec.gov , as well as the risks set out in Wheaton's
management's discussions and analysis for the periods ended March
31, 2020 and June 30, 2020 both available on SEDAR and EDGAR
(together, the "Disclosure"). Forward-looking statements are based
on assumptions management currently believes to be reasonable,
including (without limitation): the payment of US$110 million to
Caldas and the satisfaction of each party's obligations in
accordance with the terms of the Precious Metals Stream agreement,
that there will be no material adverse change in the market price
of commodities, that the Mining Operations will continue to operate
and the mining projects will be completed in accordance with public
statements and achieve their stated production estimates, that the
mineral reserve and mineral resource estimates from Mining
Operations (including reserve conversion rates) are accurate, , and
such other assumptions and factors as set out in the Disclosure.
There can be no assurance that forward-looking statements will
prove to be accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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