Wheaton Precious Metals Corp. has secured a 1.5 % net‑smelter‑returns royalty on gold and silver production from Spanish Mountain Gold Ltd.’s Spanish Mountain Gold Project, a Tier 1 open‑pit operation in the Cariboo District of British Columbia. The deal brings in $55 million in cash proceeds, providing Spanish Mountain with a non‑dilutive capital injection to advance its feasibility study and move toward a 2028 build decision.
The $55 million is structured in three installments: $22.5 million is paid immediately upon execution of the agreement, $12.5 million follows the completion of 60,000 meters of drilling, and the final $20 million is released once environmental approvals for mine construction and operation are obtained. The staged payment schedule ties the cash flow to key development milestones, reducing risk for both parties while ensuring Spanish Mountain can progress its project timeline.
From Wheaton’s perspective, the acquisition expands its portfolio of long‑life precious‑metal streams in a politically stable jurisdiction. The Cariboo District’s reputation as a Tier 1 mining region, combined with the project’s 14‑year mine life, aligns with Wheaton’s strategy of securing high‑quality, low‑risk royalties that generate predictable cash flows over the long term.
For Spanish Mountain, the $55 million infusion is critical to completing the 18‑month feasibility study and securing the capital needed for a 2028 construction decision. The non‑dilutive nature of the financing preserves ownership while providing a clear path to production, addressing the company’s need for capital to advance the project’s development milestones.
Spanish Mountain’s shares surged 16 % on the day of the announcement, reflecting investor confidence in the capital structure and the project’s potential. Wheaton’s shares fell 3.3 %, a move attributed to profit‑taking after a strong run‑up in the stock. Peter Mah, President, CEO and Director of Spanish Mountain, said, “We are thrilled to partner with Wheaton. Entering into the definitive financing agreement propels the Spanish Mountain Gold project feasibility study forward, which the Company aims to complete in 18 months, enabling a build decision in 2028.” Haytham Hodaly, President & CEO of Wheaton Precious Metals, added, “Wheaton is pleased to support the advancement of Spanish Mountain, a long‑life gold project in British Columbia, a jurisdiction we know well. The project’s scale and long‑term potential align with our disciplined approach to growth in established mining jurisdictions.”
The transaction underscores the continued demand for high‑quality royalty streams in Canada’s Tier 1 jurisdictions and highlights Spanish Mountain’s strategy of leveraging non‑dilutive financing to accelerate project development. The deal positions Wheaton to benefit from a long‑term royalty stream while giving Spanish Mountain the resources to move closer to production, potentially unlocking significant value for both companies over the next decade.
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