Sunday, June 1, 2025

Latest

Wheaton Plans To Acquire Gold, Silver Streams On Blackwater Project For US$441 Million

Wheaton Precious Metals Corp. (TSX: WPM) announced on Monday night the agreement to acquire gold and silver streams on the Blackwater project in British Columbia, a property managed by Artemis Gold Inc. (TSX: ARTG). The total consideration for the transactions is US$441 million.

The company is looking to purchase the existing gold stream held by New Gold Inc. (TSX: NGD) for an upfront consideration of US$300 million. The stream will entitle Wheaton to receive 8% of the payable gold production until 279,908 ounces have been delivered, and then 4% for the rest of the mine’s life.

On the other hand, Wheaton will also acquire a silver stream for US$141 million payable in cash to Artemis Gold and in four equal installments over the construction period of the Blackwater project. The acquisition entitles the firm to receive 50% of the payable silver production until 17.8 million ounces have been delivered, and then 33% for the life of mine.

The sale of the gold stream currently held by New Gold to Wheaton is made possible after Artemis Gold waived its “right of first offer”. This is in exchange for New Gold waiving its “right of first refusal” on the planned sale of the silver stream, making Wheaton’s acquisition of it also possible.

Wheaton is expected to make ongoing cash payments equal to 35% of the spot gold price. With the silver stream, the company will make cash payments equal to 18% of the spot silver price, which could increase to 22% when the value of silver delivered less the total ongoing payments becomes equal to the upfront payment.

The forecast for Blackwater project’s attributable production is approximately 26,000 gold ounces and 480,000 silver ounces for the first five years, and 28,000 gold ounces and 670,000 silver ounces for the first ten years.

The company expects to finance the acquisitions from its US$372 million of cash on hand combined with under US$2 billion revolving term loan and ongoing operating cash flows.

Artemis Gold expects major construction at the project to start in Q2 2022 and production commencing in Q1 2024. 

Wheaton Precious Metals last traded at $52.46 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Artemis Gold Removes Non-Essential Staff From Blackwater Mine Amid Wildfire Risk

Wildfires in Western Canada are seemingly impacting more than just oil operators. Artemis Gold (TSXV:...

Monday, July 22, 2024, 08:57:47 AM

New Gold Posts Record Revenue In Q3 While Cutting 2024 Production Guidance

New Gold (TSX: NGD) this morning reported its third quarter financial results, posting $252.0 million...

Wednesday, October 30, 2024, 09:14:00 AM

Artemis Gold: BMO Lifts Price Target After Streaming Deal

On December 14th, Wheaton Precious Metals Corp. (TSX:WPM) announced that it has entered into an...

Saturday, January 1, 2022, 12:31:00 PM

Caldas Announces US$110 Million Streaming Arrangement With Wheaton, Subsequent Financings

Caldas Gold Corp (TSXV: CGC) this morning announced that it has managed to secure a...

Monday, June 22, 2020, 08:50:23 AM

New Gold Reports Q2 Revenues Of $198 Million, Net Loss

New Gold Inc. (TSX: NGD) today reported its second quarter 2021 results for the period...

Wednesday, August 11, 2021, 09:37:00 AM