TIDMWPM
RNS Number : 5629V
Wheaton Precious Metals Corp.
14 December 2021
December 13, 2021 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
WHEATON PRECIOUS METALS announces acquisition of gold and Silver
streams on Artemis's blackwater project
Wheaton Precious Metals(TM) Corp. ("Wheaton" or the "Company")
is pleased to announce that it has entered into a definitive
agreement to acquire the existing gold stream (the "Gold Stream")
held by New Gold Inc. ("New Gold") in respect of gold production
from the Blackwater Gold Project located in British Columbia,
Canada (the "Blackwater Project"). In addition, the Company has
entered into a Precious Metal Purchase Agreement (the "Silver
Stream") with Artemis Gold Inc. ("Artemis") (TSX: ARTG) in respect
of silver production from the Blackwater Project.
"The acquisition of the gold and silver streams on the
Blackwater Project further enhances and diversifies Wheaton's
existing portfolio of low-cost, high-quality, long-life mines. With
strong ESG commitments at every stage of development, compelling
economics and significant exploration upside potential, Blackwater
incorporates many of the attributes we seek for accretive growth,"
said Randy Smallwood, Wheaton's President and Chief Executive
Officer. "Artemis's approach of disciplined, responsible resource
development aligns well with our own focus on promoting
industry-leading mining practices. We are proud to partner with
Artemis in the advancement of the Blackwater Project, which we
believe is on track to develop into a top-tier operation, producing
socially and environmentally sound minerals, right in our own
backyard."
TRANSACTION DETAILS
-- Upfront Consideration: Wheaton will pay total upfront
consideration of US$441 million for the precious metal streams.
Upon closing of the purchase of the Gold Stream, Wheaton will pay
New Gold US$300 million. Under the Silver Stream, Wheaton will pay
Artemis total upfront cash consideration of approximately US$141
million, which is payable in four equal installments during
construction of the Blackwater Project, subject to customary
conditions being satisfied.
-- Streamed Metal: Under the Gold Stream, Wheaton will be
entitled to receive 8% of the payable gold production until 279,908
ounces have been delivered, thereafter dropping to 4% of payable
gold production for the life of the mine. Under the Silver Stream,
Wheaton will be entitled to receive 50% of the payable silver
production until 17.8 million ounces ("Moz") have been delivered,
thereafter dropping to 33% of payable silver production for the
life of the mine.
-- Delivery Payments: For gold ounces delivered, Wheaton will
make ongoing cash payments equal to 35% of the spot gold price. For
silver ounces delivered, Wheaton will make ongoing cash payments
("Silver Production Payment") equal to 18% of the spot silver price
until the value of silver delivered less the Silver Production
Payment is equal to the upfront cash consideration, at which point
the Silver Production Payment will increase to 22% of the spot
silver price.
-- Production Profile [1] : Attributable gold production is
forecast to average approximately 26 koz per year for the first
five full years of production and 28 koz per year for the first ten
full years. With a fixed silver recovery of 61%, attributable
silver production is forecast to average over 480 koz per year for
the first five full years of production, and over 670 koz per year
for the first ten full years.
-- Incremental Reserves and Resources [2] : The Gold and Silver
Streams will increase Wheaton's estimated Proven and Probable gold
reserves by 0.47 Moz and silver reserves by 31.0 Moz, Measured and
Indicated gold resources by 0.15 Moz and silver resources by 19.9
Moz, and Inferred gold resources by 0.01 Moz and silver resources
by 2.3 Moz. In addition, Wheaton believes significant exploration
upside potential exists as the Blackwater Project deposit remains
open to the North, Northwest and at depth, and given the Gold
Stream's substantial area of interest.
-- Other Considerations:
o Artemis and certain of its subsidiaries will provide Wheaton
with corporate guarantees and other security.
o Artemis has waived its right of first offer with respect to
the purchase of the Gold Stream. New Gold has waived its right of
first refusal with respect to the Silver Stream.
FINANCING THE TRANSACTION
The $300 million acquisition price for the Gold Stream will be
paid on closing of the purchase agreement. The $141 million upfront
deposit under the Silver Stream will be paid over the construction
of the Blackwater Project. As at September 30, 2021, the Company
had approximately US$372 million of cash on hand, which when
combined with the liquidity provided by the available credit under
the $2 billion revolving term loan and ongoing operating cash
flows, positions the Company well to fund all outstanding
commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream
interests.
ABOUT ARTEMIS AND THE BLACKWATER PROJECT
Artemis is a gold development company with a technically driven
approach to shareholder value creation through identifying,
acquiring and developing gold projects in mining friendly
jurisdictions using a disciplined staged approach to development,
managing risks while minimizing cost of capital to optimize
economics and returns for shareholders.
As disclosed by Artemis, the primary focus for Artemis is on
advancing construction of the Blackwater Project, a project with 8
million ounces of gold in reserves, Environmental Assessment
approval and the potential to develop into one of the largest gold
mines in Canada. The Blackwater Project is forecast to be a first
quartile gold mine [3] with a 22 year mine life(1) . Artemis has
disclosed that it expects major construction to commence in the
second quarter of 2022, with production commencing in the first
quarter of 2024.
Attributable Gold Mineral Reserves and Mineral Resources -
Blackwater
Category Tonnage Grade Contained
Mt Au g/t Au Moz
----------- -------- -------- ----------
Proven 19.3 0.74 0.46
Probable 0.5 0.80 0.01
P&P 19.8 0.74 0.47
Measured 4.1 0.35 0.05
Indicated 6.4 0.49 0.10
----------- -------- ----------
M&I 10.5 0.44 0.15
-------- ----------
Inferred 0.7 0.45 0.01
Attributable Silver Mineral Reserves and Mineral Resources -
Blackwater
Category Tonnage Grade Contained
Mt Ag g/t Ag Moz
----------- -------- -------- ----------
Proven 161.9 5.8 30.1
Probable 4.6 5.8 0.9
P&P 166.5 5.8 31.0
Measured 33.7 4.7 5.1
Indicated 52.9 8.7 14.8
----------- -------- ----------
M&I 86.6 7.1 19.9
-------- ----------
Inferred 5.6 12.8 2.3
Notes on Mineral Reserves & Mineral Resources:
1. All Mineral Reserves and Mineral Resources have been
estimated in accordance with the 2014 Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards for Mineral Resources and
Mineral Reserves and National Instrument 43-101 - Standards for
Disclosure for Mineral Projects ("NI 43-101").
2. Mineral Reserves and Mineral Resources are reported above in
millions of metric tonnes ("Mt"), grams per metric tonne ("g/t")
and millions of ounces ("Moz").
3. Qualified persons ("QPs"), as defined by the NI 43-101, for
the technical information contained in this document (including the
Mineral Reserve and Mineral Resource estimates) are:
a. Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); and
b. Ryan Ulansky, M.A.Sc., P.Eng. (Vice President, Engineering),
both employees of the Company (the "Company's QPs").
4. The Mineral Resources reported in the above tables are
exclusive of Mineral Reserves. Artemis report Mineral Resources
inclusive of Mineral Reserves. The Company's QPs have made the
exclusive Mineral Resource estimates for the mine based on average
mine recoveries and dilution.
5. Mineral Resources, which are not Mineral Reserves, do not
have demonstrated economic viability.
6. Blackwater project Mineral Reserves are reported as of
September 10, 2021 and Mineral Resources as of May 5, 2020.
7. Blackwater project Mineral Reserves are reported above an NSR
cut-off of CAD$13.00 / tonne assuming US$1,400 per ounce gold and
US$15.00 per ounce silver.
8. Blackwater project Mineral Resources are reported above a
gold equivalent cut-off of 0.2 grams per tonne assuming US$1,400
per ounce gold and US$15.00 per ounce silver.
9. The Blackwater Silver Stream and Gold Stream agreements
provide that Artemis will deliver respectively (i) 50% of the
payable silver production until 17.8 million ounces are delivered
and 33% thereafter for the life of the mine, and (ii) 8% of the
payable gold production until 279,908 ounces are delivered and 4%
thereafter for the life of the mine. Attributable reserves and
resources have been calculated on the 50% / 33% basis for silver
and 8% / 4% basis for gold, assuming closing of both the Silver
Stream and Gold Stream acquisition.
Neil Burns, P.Geo., Vice President, Technical Services for
Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President,
Engineering, are a "qualified person" as such term is defined under
National Instrument 43-101, and have reviewed and approved the
technical information disclosed in this news release (specifically
Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky
has reviewed the mineral reserve estimates).
For further information, please contact:
Patrick Drouin
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKINGSTATEMENTS
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 of approximately US$141
million to Artemis and the satisfaction of each party's obligations
in accordance with the Silver Stream , the receipt by Wheaton of
silver production in respect of the Blackwater Project, payment by
Wheaton of US$300 million to New Gold and the satisfaction of each
party's obligations in accordance with the Gold Stream purchase
agreement, the satisfaction of each party's obligations in
accordance with the Gold Stream , the receipt by Wheaton of gold
production in respect of the Blackwater 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 Silver Stream, the
Gold Stream purchase agreement and the Gold Stream , 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, 2020 and Form 6-K filed March 11, 2021 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 period
ended December 31, 2020 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 approximately US$141 million to Artemis
and the satisfaction of each party's obligations in accordance with
the terms of the Silver Stream , the payment of US$300 million to
New Gold and the satisfaction of each party's obligations in
accordance with the terms of the Gold Stream purchase agreement,
the satisfaction of each party's obligations in accordance with the
terms of the Gold Stream, 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.
[1] ) Based on report entitled "Blackwater Gold Project NI
43-101 Technical Report on Updated Feasibility Study
with an effective date of September 10, 2021. Production
forecasts contain forward looking information and readers are
cautioned that actual outcomes may vary. Please see "Cautionary
Note Regarding Forward Looking-Statements" at the end of this news
release for material risks, assumptions, and important disclosure
associated with this information.
[2] ) Please refer to the Attributable Mineral Reserves &
Mineral Resources table in this news release for full disclosure of
reserves and resources associated with the Blackwater project
including accompanying footnotes. The additional Attributable
Mineral Reserves & Mineral Resources for gold are conditional
on the Gold Stream closing.
[3] ) S&P data set for 2024 projected global cost
curves.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDKQBQABDKCBD
(END) Dow Jones Newswires
December 14, 2021 02:00 ET (07:00 GMT)
Wheaton Precious Metals (LSE:0VOT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Wheaton Precious Metals (LSE:0VOT)
Historical Stock Chart
From Apr 2023 to Apr 2024