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Wheaton Precious Metals Corp on Friday said it has a struck a streaming agreement with Allied Gold Corp at the Kurmuk project in Ethiopia. The Vancouver-headquartered precious metals company said the precious metals purchase agreement with Allied Gold is valued at $175 million, to be paid by Wheaton in four equal instalments during construction. Wheaton will buy 6.7% of the mine’s payable gold until 22,000 ounces has been delivered, after which it will buy 4.8% of payable gold for the mine’s lifetime. The Kurmuk gold stream is forecast to produce an average of 16,000 ounces of gold per year for the first 10 years of production, with first production expected to begin in mid-2026. Wheaton Chief Executive Officer Randy Smallwood said: ‘Wheaton is pleased to announce a streaming agreement with Allied to advance the construction of the Kurmuk project, which is set to be the first commercial gold mine in Ethiopia. This fully permitted, high quality development project offers significant exploration potential, supported by a team at Allied with a proven operating track record. We are excited to partner with Allied to unlock opportunities that empower the local communities and help drive the growth of Ethiopia’s emerging metals and mining sector.’ Wheaton expects the acquisition to grow the company’s total estimated proven and probable mineral gold reserves by 180,000 ounces, its measured and indicated mineral gold resources by 30,000 ounces, and its inferred gold resources by 20,000 ounces. Shares in Wheaton Precious Metals were flat at 4,884.82 pence each in London on Friday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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