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Wheaton Precious Metals Closes New Precious Metals Purchase Agreement with First Majestic

Published: 05/10/2018

Team: Mark T. Bennett, Alexandra Iliopoulos, Alexander Pizale, David Budd, Jennifer Wasylyk

On May 10, 2018, Wheaton Precious Metal Corp. closed a new precious metals purchase agreement with First Majestic Silver Corp. on the San Dimas mine following the completion of the plan of arrangement whereby First Majestic has acquired all of the outstanding shares of Primero Mining Corp. 

In connection with the arrangement, Wheaton agreed to terminate the existing San Dimas silver purchase agreement with Primero and enter into the First Majestic agreement. The terms of the First Majestic agreement are: 

  • 25% of gold production plus an additional amount of gold equal to 25% of silver production converted to gold at a fixed gold to silver exchange ratio for a period of six months; and
  • for each ounce of gold delivered, Wheaton will pay to First Majestic a production payment equal to the lesser of US$600/oz, subject to certain adjustments.

As part of the transaction and in addition to the new stream, First Majestic issued 20,914,590 First Majestic common shares to Wheaton. 

Cassels Brock acted for Wheaton with a deal team that included Mark Bennett, Alex Iliopoulos and Alexander Pizale (Securities and Mining) and David Budd and Jennifer Wasylyk (Financial Services).