#USA #Nevada #Wheaton Precious Metals #Spring Valley #Waterton Gold

Wheaton Precious Metals Announces Expansion through Gold Stream Acquisition

Wheaton Precious Metals™ Corp. is excited to share its latest strategic move in the mining sector. The company's wholly-owned subsidiary, Wheaton Precious Metals International Ltd., has finalized a Precious Metals Purchase Agreement, commonly referred to as a Gold Stream, with Waterton Gold Corp., a subsidiary of Waterton Gold LP, concerning the Spring Valley Project located in Nevada, USA. This project is under the management of Solidus Resources, LLC, a subsidiary wholly owned by Waterton Gold.

A Partnership of Strength

Randy Smallwood, CEO of Wheaton Precious Metals, expressed his enthusiasm about deepening the partnership with Waterton Gold. He emphasized that the Spring Valley Project aligns closely with Wheaton's dedication to investing in high-quality, low-cost assets that demonstrate strong geological potential and strategic positioning. The collaboration aims to capitalize on the project's extensive development potential, building on the successful partnership established at the Mineral Park mine.

Haytham Hodaly, President of Wheaton Precious Metals, echoed this sentiment, highlighting that the Spring Valley project enriches Wheaton's portfolio with a new, high-quality mining opportunity in a premier mining jurisdiction. He pointed out that the project successfully passed Wheaton's demanding due diligence checklist, which evaluates the mine's scale, profitability margins, exploration opportunities, and the experience of its management team.

Financial Commitments and Project Details

The arrangement entails an upfront payment of $670 million to Waterton Gold, implemented in installments as specific conditions are met. Under the Gold Stream terms, Wheaton Precious Metals will acquire 8% of the payable gold produced until the delivery reaches 300,000 ounces. Following this, the purchase rate will adjust to 6% for the mine's operational lifespan.

The production forecast for the Spring Valley Project looks promising, with expected annual gold production averaging approximately 29,000 ounces during the initial five years and over 25,000 ounces annually for the first decade. The project has a planned lifespan of ten years based on existing reserves, with first production anticipated in 2028.

Project Development Phases

Significantly, less than 5% of the Spring Valley land package will be utilized for mining activities, leaving ample opportunities for extending the mine's operational life through future exploration. Initial site work is already underway in preparation for full construction set to begin in 2026, aiming to achieve its first gold production in 2028. Isser Elishis, Executive Chairman of Waterton Gold, reinforced the significance of this partnership, noting that the investment from Wheaton fully funds the project and positions it as Nevada's next major low-cost heap-leach gold mine, promising long-term value creation for stakeholders involved.

In-territory production payments will be calculated at a rate of 20% of the spot gold price until the deposit is cleared, subsequently increasing to 22%. This structure ensures that Wheaton Precious Metals retains significant upside from its investment while managing risks effectively.

Resource Enhancement

With the addition of the Spring Valley Project, Wheaton's estimated gold reserves are anticipated to increase significantly, including a boost of 0.31 million ounces in probable reserves, along with additional resources to enhance its strategic resource base. The completion test and additional measures like a cost overrun facility of up to $150 million introduce further security and flexibility into the financial arrangement.

As of June 30, 2025, Wheaton held around $1 billion in cash and had access to considerable liquidity through its revolving credit facilities. This strong financial foundation ensures that Wheaton is well-prepared to proceed with its acquisition while continuing to manage existing commitments and explore additional mineral opportunities.

About the Companies Involved

Solidus Resources is pivotal in advancing the Spring Valley Gold Project with a comprehensive drilling history of over 950,000 feet and all necessary federal permits acquired. The successful transition into the construction phase marks a crucial milestone towards the anticipated first production date.

Wheaton Precious Metals stands out as a leader in the precious metals streaming industry, focusing on sustainable practices and community engagement. Its approach provides investors with the potential for commodity price leverage while minimizing the risks associated with traditional mining operations. The company's business model consistently outperforms gold and silver markets, underscoring its capability to deliver competitive returns through strategic acquisitions and robust operational management.

In summary, this acquisition not only showcases Wheaton's commitment to bolstering its portfolio but also reflects a sound business strategy that aligns with sustainability and profitability in the competitive mining landscape.