Make Kitco Your Homepage

SEMAFO Pours First Gold At Boungou Mine

Kitco News

SEMAFO Inc. (TSX, OMX: SMF) has completed the first gold pour at the Boungou Mine in Burkina Faso, the company repots. The first pour yielded approximately 325 ounces of gold. Dry and wet commissioning of the Boungou processing plant were completed, as was construction. “The first gold pour at Boungou marks an important milestone in SEMAFO’s growth trajectory as it signals the beginning of a significant increase in production and cash flow,” says Benoit Desormeaux, president and chief executive officer. As of the end of May, 17.2 million of the projected 18 million tonnes of pre-strip had been completed at Boungou and approximately 172,000 tonnes of ore had been stockpiled for future processing, in line with the company’s expectations.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Wheaton Completes Acquisition Of Cobalt Stream

Friday June 29, 2018 08:26

Wheaton Precious Metals Corp. (TSX, NYSE: WPM) says it has completed the previously announced acquisition of a cobalt stream from a subsidiary of Vale S.A. Under the deal, Wheaton will be entitled to receive a percentage of cobalt production from the Voisey's Bay mine in Canada. Wheaton paid Vale $390 million up front and will make ongoing payments of 18% of the Metal Bulletin market price per cobalt pound delivered. The upfront cash payment was paid by using amounts drawn from the company's $2 billion revolving credit facility, Wheaton says. The closing of this transaction occurred in conjunction with Vale completing a separate streaming agreement with Cobalt 27 Capital Corp. Wheaton and Cobalt 27 have provided Vale with a combined $690 million in funding for the combined purchase of cobalt equal to 75% of Voisey's Bay cobalt production, effective Jan. 1, 2021. As of then, Wheaton will be entitled to receive 42.4% of the Voisey's Bay mine cobalt production until the delivery of 31 million pounds of cobalt and an amount of cobalt equal to 21.2% of cobalt production thereafter for the life of mine. Wheaton describes Voisey's Bay is one of the lowest-cost, highest-margin nickel mines in the world.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News