Mining News
Wheaton acquires gold and platinum stream from Gen Mining's Marathon project
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(Kitco News) - Wheaton Precious MetalsTM announced today that it has entered into a binding arrangement with Generation Mining (TSX: GENM) for a precious metal purchase agreement in respect to the Marathon project located in Ontario, Canada.
Wheaton said that under the agreement, it will purchase 100% of the payable gold production until 150 thousand ounces ("koz") have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120 koz have been delivered, thereafter dropping to 15% for the life of mine.
Wheaton added it will pay Gen Mining a total upfront cash consideration of C$240 million, C$40 million of which will be paid on an early deposit basis prior to construction to be used for development of the Marathon project, with the remainder payable in four staged installments during construction.
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Importantly, the company pointed out that completion of the agreement is subject to the closing of Gen Mining's acquisition of the remaining 16.5% interest in the Marathon project from Sibanye Stillwater, as announced by Gen Mining on December 8, 2021.
"The Marathon project provides Wheaton with accretive, near-term growth that further diversifies our existing portfolio and preserves our focus on precious metals," said President and CEO Randy Smallwood. "Wheaton is proud to support Gen Mining in the responsible development of the Marathon project, recently projected to have one of the lowest operational carbon footprints of any mine in the world, once producing."
The Marathon project is forecast to be high-margin palladium mine with a 13-year mine life. Attributable production once the mine and mill are fully ramped up is forecast to average over 16 koz of gold and 14 koz of platinum per year for the first five years of production, and approximately 15 koz of gold and 11 koz of platinum per year for the first ten full years. Gen Mining anticipates construction activities to begin in 2022, with production commencing in 2024.
