Wheaton Precious Metals Corp. Agreement to Terminate Keno Hill Silver Stream (3925R)
05 July 2022 - 09:26PM
UK Regulatory (RNS & others)
TIDMWPM
RNS Number : 3925R
Wheaton Precious Metals Corp.
05 July 2022
July 5, 2022
Vancouver, British Columbia
TSX | NYSE | LSE: WPM
WHEATON PRECIOUS METALS ENTERS INTO AGREEMENT TO TERMINATE ITS
EXISTING Silver STREAM in the Keno Hill silver district
Wheaton Precious Metals(TM) Corp. ("Wheaton" or the "Company")
is announcing that it has entered into a definitive agreement with
Hecla Mining Company ("Hecla") (NYSE:HL) to terminate its silver
stream on Alexco Resource Corp.'s ("Alexco") (NYSE American/TSX:
AXU) Keno Hill Silver District ("Keno Hill") in the Yukon, Canada
for US$135 million.
"The termination of the Keno Hill stream further demonstrates
our ability to strategically identify opportunities both inside and
outside of our portfolio that create value for our shareholders and
positions Wheaton to continue to have one of the strongest balance
sheets in the industry. While we firmly believe that Keno Hill is a
high-quality district with significant exploration potential, given
recent announcements, the ability to obtain an immediate return on
the termination of the stream was too compelling to ignore," said
Randy Smallwood, Wheaton's President and Chief Executive Officer.
"We believe Hecla is well positioned to effectively mine Keno Hill
and maximize its full potential."
On July 5, 2022, Hecla announced its intention to acquire Alexco
through a definitive arrangement agreement, which remains subject
to shareholder and regulatory approvals. The termination of the
Keno Hill silver stream is conditional upon Hecla completing its
announced proposed acquisition of Alexco together with other
customary approvals.
As consideration for the termination of the Keno Hill silver
stream, Hecla will issue to Wheaton $135 million of Hecla common
shares. Subsequent to the closing of the termination of the Keno
Hill silver stream, Wheaton will own approximately 5.6% of Hecla's
issued and outstanding common shares. The exact number of Hecla
common shares to be issued will be calculated immediately before
the closing date.
Hecla is the largest primary silver producer in the United
States. In addition to operating mines in Alaska, Idaho and Québec,
Canada, the Company owns a number of exploration projects in
world-class silver and gold mining districts throughout North
America.
The closing of the transaction with Hecla, including the
termination of the Keno hill stream, is subject to Hecla closing
its acquisition of Alexco and other customary conditions.
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-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, the termination of the Keno Hill silver stream
to Hecla for $135 million and the satisfaction of each party's
obligations in accordance with definitive documentation relating to
the termination of the Keno Hill silver stream. 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 termination of the Keno Hill silver stream and the
satisfaction of each party's obligations in accordance with the
terms of the definitive documentation relating to the termination
of the Keno Hill silver stream, 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, 2021 and Form 6-K filed March 10, 2022 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, 2021 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 receipt of $135 million from Hecla and the
satisfaction of each party's obligations in accordance with the
terms of the definitive documentation relating to the termination
of the Keno Hill silver stream, 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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END
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