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Fort Capital Acts as Financial Advisor to Wheaton Precious Metals

Transaction Details

Wheaton International is acquiring a gold stream from Capstone’s Santo Domingo Project.

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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 Santo Domingo project located in Atacama Region, Chile.

Wheaton International will purchase 100% of the payable gold production until 285 thousand ounces have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine. Wheaton International will pay Capstone total upfront consideration of US$290 million, $30 million of which is payable upon closing and the remainder of which is payable during construction. In addition, Wheaton will make ongoing payments for gold ounces delivered (the “Production Payment”) equal to 18% of the spot gold price until the value of gold delivered less the cumulative Production Payments is equal to the upfront consideration of US$290 million, at which point the Production Payment will increase to 22% of the spot gold price.

The Santo Domingo project is forecast to be a first quartile copper mine with an 18 year mine life. Capstone expects major construction to commence in late 2021 with the first full year of production forecast for 2024.

Fort Capital acted as Financial Advisor to Wheaton International on the Stream Transaction.