On December 5, 2024, Allied Gold Corporation entered a streaming transaction with Wheaton Precious Metals International Ltd. (“WPMI”), a wholly-owned subsidiary of Wheaton Precious Metals Corp., to support the funding of Allied Gold’s growth strategy underpinned by the development of its Kurmuk Project in Ethiopia. Allied Gold will receive an aggregate US$175 million upfront cash payment in four equal installment payments during construction of the Kurmuk Project, subject to certain customary conditions precedent.
Pursuant to the terms of the streaming transaction, WPMI will have the right to purchase 6.7% of payable gold from Allied’s Kurmuk mine (the “Stream”), with the gold stream rate stepping down to 4.8% of payable gold after delivery of 220,000 ounces of gold. WPMI will make ongoing payments of 15% of the spot gold price for each ounce of gold delivered under the Stream. The Stream will cover the existing Kurmuk mining license and, until 255,000 ounces of gold have been delivered to WPMI, any mineral interests located within a 50km radius of the Kurmuk mining license which are processed at the Kurmuk plant.
Cassels acted for Allied Gold.