Wheaton Precious to acquire Spring Valley gold stream

Executive Summary

• Wheaton Precious Metals Corp. (via its subsidiary WPMI) has entered into a definitive precious metals purchase agreement to acquire a gold stream on the Spring Valley project in Nevada, owned by Waterton Gold Corp.
• The transaction involves a total upfront cash consideration of $670 million, with payments made in installments as conditions are satisfied.
• The deal significantly expands Wheaton's portfolio, adding estimated probable mineral gold reserves of 310,000 ounces and indicated resources of 600,000 ounces, with first production expected in the first half of 2028.

Key Details

• Upfront Consideration: WPMI will pay Waterton Gold a total of $670 million in cash, paid in installments upon satisfaction of various conditions.
• Stream Structure:
  • WPMI will purchase 8% of payable gold until 300,000 ounces have been delivered.
  • Thereafter, WPMI will purchase 6% of payable gold for the life of the mine.
  • Gold payability rates are fixed at 99.9%.
• Production Payments: WPMI will pay 20% of the spot price of gold for delivered ounces until the uncredited deposit is fully reduced, and 22% of the spot price thereafter.
• Production Profile:
  • Attributable production is forecast to average ~29,000 ounces of gold per year for the first five years.
  • Production is expected to average >25,000 ounces of gold per year for the first 10 years.
  • First gold production is expected in the first half of 2028.
  • Mine life is estimated at 10 years based on reserves at an $1,800/oz gold price.
• Reserve and Resource Impact:
  • Increases Wheaton's total estimated probable mineral gold reserves by 310,000 ounces.
  • Increases indicated mineral gold resources by 600,000 ounces.
  • Increases inferred gold resources by 50,000 ounces.
• Cost Overrun Facility: WPMI will provide a cost overrun facility of up to $150 million, accessible after the full upfront consideration is paid, with a maturity date of three years following the first drawdown.
• Security: Waterton Gold and Solidus Resources LLC will provide corporate guarantees and certain other security over their assets.
• Completion Test: The gold stream includes a customary completion test.
• Funding: The acquisition is funded using approximately $1 billion in cash on hand (as of June 30, 2025), combined with liquidity from a $2 billion revolving term loan, a $500 million accordion, and operating cash flows.

Notable Quotes

• Randy Smallwood, CEO of Wheaton Precious Metals: "Wheaton is delighted to support one of our existing partners, Waterton, as they advance the Spring Valley project, a large-scale gold development in Nevada... Spring Valley aligns perfectly with our commitment to investing in high-quality, value-accretive assets."
• Haytham Hodaly, President of Wheaton Precious Metals: "The addition of Spring Valley adds another high-quality, low-cost mine in a Tier 1 jurisdiction to Wheaton's portfolio... We're excited to deepen our relationship with Waterton as they unlock the full potential of this asset."
• Isser Elishis, Executive Chairman of Waterton Gold: "With Wheaton's commitment, the project is now fully funded, backed by $1.3-billion in committed capital. Early site works are already under way as we prepare to commence full construction in 2026 and achieve first gold production in the first half of 2028."