Wheaton acquires Jervois project's metal streams for USD275 million

(Alliance News) - Wheaton Precious Metals Corp on Thursday said it has agreed to purchase a ...

Alliance News 2 April, 2026 | 8:46AM
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(Alliance News) - Wheaton Precious Metals Corp on Thursday said it has agreed to purchase a portion of gold and silver produced by a subsidiary of KGL Resources Ltd at the Jervois project in Australia.

The partnership, which will be carried out by Wheaton's international subsidiary, is based on estimates indicating that about 92,000 ounces of gold and 9.2 million ounces of silver have been either proven or are probable to be at the project's site.

Wheaton said it forecasts the Jervois project to have a lifespan of 10 years, although further exploration may extend the longevity of the mine. The first production from the project in Australia's Northern Territory is expected in the second half of next year.

Under the terms of the agreement, Wheaton Precious Metals International Ltd, will pay KGL a total cash consideration of USD275 million upfront.

Shares in Wheaton Precious Metals were down 3.7% to 9,920.00 pence each on Thursday morning in London. The current performance is part of a broader sell-off of shares in mining company and metal commodities.

The price of gold was down 3.1% from the price at the last market close in London to USD4,633.69 per troy ounce on Thursday morning on the New York-based Commodity Exchange, while silver was down 4.8% to USD71.47 per troy ounce.

The mining company with interests in Africa, the Americas, Australia, and Europe said that two instalments of USD16 million each will be paid as early deposits in the second and third quarter of 2026, while the remaining USD243 million will be paid in four equal instalments over the construction period.

Wheaton will then purchase 75% of the stream of gold and silver produced by the mine with a payability factor of 90% until reaching a threshold of 45,000 ounces of gold and 4.3 million ounces of silver. It will then taper off its purchases over time.

Further USD25 million has also been provided as a cost overrun stream, accessible before the fifth anniversary of the deal, which would however change the purchasing terms of the silver stream.

Wheaton currently expects production to average 5,800 ounces of gold and 770,000 ounces of silver per annum in the first five years of production.

Wheaton expects to fund the majority of the upfront payment from operating cash flows during the construction phase lasting throughout 2027. It then projects cash flows to follow an anticipated production growth of approximately 50% by 2030.

Additionally, Wheaton will obtain the right of first refusal on future precious metal streams and royalties related to the Jervois project, while KGL will have the option to buy back a third of the stream before the end of 2029 should it experience a change in its control.

KGL first acquired Jervois in 2011 as a copper project.

By Martin Miraglia, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Wheaton Precious Metals Corp 9,820.00 GBX -4.66 -
Wheaton Precious Metals Corp 190.12 CAD 4.12 -

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