Wheaton Precious Metals Corp. has entered into a streaming agreement with Capstone Mining Corp. regarding the Cozamin mine located in Zacatecas, Mexico. Wheaton will pay Capstone upfront cash consideration of $150 million upon closing for 50% of the silver production until 10 million ounces (oz) have been delivered, thereafter dropping to 33% of silver production for the life of the mine. In addition, Wheaton will make ongoing payments for silver ounces delivered equal to 10% of the spot silver price.
The streaming agreement became effective December 1.
For the five years starting in 2021, attributable silver production is forecast to average approximately 820,000 oz per year.
Wheaton is also in advanced discussions with Capstone regarding a potential gold stream on their Santo Domingo project, which would provide additional near-term growth for the company.