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Wheaton Precious Metals Closes Gold and Palladium Streaming Agreement

Published: 07/25/2018

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

On July 25, 2018, Wheaton Precious Metals Corp., through its wholly-owned subsidiary Wheaton Precious Metals International Ltd., closed a gold and palladium streaming agreement with Sibanye-Stillwater. Under the streaming agreement, Wheaton International has paid US$500 million in cash upfront to Sibanye-Stillwater in exchange for an amount of gold equal to 100% of the gold production from the Stillwater assets over the operating life of the assets and an amount of palladium equal to: 4.5% of palladium production from the Stillwater assets until 375 thousand ounces are delivered to Wheaton International; thereafter, 2.25% of palladium production until 550 thousand ounces are delivered; and subsequently 1% of palladium production for the life of the Stillwater assets.

In addition, Wheaton International will make ongoing payments equal to a maximum of 18% of the spot gold price and spot palladium price until the balance of the upfront cash payment is reduced to zero. Thereafter, ongoing payments will be 22% of the spot gold price and spot palladium prices.

The streaming agreement is effective July 1, 2018.

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