Fort Capital Partners is pleased to announce its role as financial advisor to Wheaton International’s acquisition of a new silver stream from Capstone’s Cozamin Mine.
Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) has announced that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd. (“Wheaton International“) has entered into a definitive Precious Metal Purchase Agreement (the “Stream Transaction“) with Capstone Mining Corp. (“Capstone“) (TSX: CS) in respect to Capstone’s Cozamin Mine located in Zacatecas, Mexico.
Wheaton International will pay Capstone upfront cash consideration of US$150 million upon closing for 50% of the Cozamin’s silver production until 10 million ounces (“Moz“) have been delivered, thereafter dropping to 33% of silver production for the life of the mine. In addition, Wheaton will make ongoing payments for silver ounces delivered equal to 10% of the spot silver price. The Precious Metal Stream is effective December 1, 2020.
Cozamin is a copper mine that has been operated by Capstone since 2006. Subsequent to the closing of this acquisition, the addition of Cozamin will increase Wheaton’s estimated Proven and Probable silver reserves by 6.8 Moz, Measured and Indicated silver resources by 10.8 Moz and Inferred silver resources by 6.3 Moz.
Significant exploration upside potential exists. Proven and Probable silver reserves for Cozamin as of April 30, 2020, increased by over 100% from the prior year, and Measured and Indicated silver resources increased by over 70%. Capstone is also in the process of completing a pre-feasibility study of an underground paste backfill system for Cozamin that could potentially increase the extraction ratio as mining pillars are currently excluded in the existing mine plan.
Fort Capital acted as Financial Advisor to Wheaton International on the Stream Transaction.
ABOUT WHEATON PRECIOUS METALS
Wheaton is the world’s premier precious metals streaming company. The Company enters into agreements to purchase all or a portion of the precious metals or cobalt production from mines located around the world for an upfront payment and an additional payment upon the delivery of the metal. Since 2004, Wheaton has assembled a high-quality portfolio of long-life, low-cost assets, which delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions.
ABOUT CAPSTONE MINING
Capstone is a Canadian base metals mining company, focused on copper with two producing mines, the Cozamin copper-silver mine in Zacatecas State, Mexico and the Pinto Valley copper mine located in Arizona, US. In addition, Capstone owns 70% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on the optimization of operations and assets in politically stable, mining friendly regions, centered in the Americas.