Wheaton to Pay $275M Upfront in $300M Streaming Deal for KGL’s Jervois Project
Wheaton Precious Metals International signed a $300m precious metals streaming agreement with KGL Resources for silver and gold by-products from the Jervois Copper Project in Australia’s Northern Territory. The deal includes a $275m upfront payment, a $25m overrun facility and rights to invest up to A$35m in future equity rounds.
1. Streaming Agreement Overview
Wheaton Precious Metals International has committed $300m to a precious metals purchase agreement with KGL Resources for by-product silver and gold from the Jervois Copper Project in Australia’s Northern Territory. The PMPA covers only the Jervois tenements and excludes other KGL assets.
2. Payment and Facility Structure
The transaction provides a $275m upfront stream payment, comprising a $32m early deposit available before construction and $243m released in four construction-linked tranches, alongside a $25m cost-overrun facility to address potential budget increases.
3. Equity Investment Rights
Wheaton secured rights to subscribe for up to A$35m or 20% of any future KGL equity offering within one year of the PMPA, with its total shareholding capped below 9.9% to comply with regulatory limits.
4. Strategic Significance
This marks Wheaton’s first streaming arrangement in Australia, diversifying its asset base and granting exposure to upcoming copper production while locking in low-cost precious metals credits tied to KGL’s Jervois development.