(Kitco News) – Vista Gold (TSX: VGZ) today announced a $20 million royalty agreement with Wheaton Precious Metals (TSX: WPM) to advance the Mt Todd gold project in Australia.
Pursuant to the terms of the royalty agreement, Vista Australia granted Wheaton a royalty in the amount of 1% of gross revenue from the sale or disposition of minerals from the project.
In consideration for the royalty, Wheaton will provide Vista with $20 million to advance Mt Todd and for general corporate purposes.
“This funding provides Vista with the opportunity to demonstrate a development strategy for Mt Todd that requires substantially lower initial capital investment and maintains high returns through staged development,” the company said in a media release.
Randy Smallwood, Wheaton’s President and CEO, said, "Wheaton is pleased to partner with Vista Australia in advancing the development of Mt Todd, which stands as one of the largest undeveloped gold projects in Australia.
“With the successful acquisition of all major operating and environmental permits, we believe Mt Todd represents a significantly de-risked, advanced development-stage gold project that we welcome into our global portfolio.”
Vista is a gold project developer. The company’s flagship asset is the Mt Todd gold project located in the mining friendly jurisdiction of Northern Territory, Australia. Mt Todd is one of the largest and most advanced undeveloped gold projects in Australia, with all major operating and environmental permits in hand.
Wheaton Precious Metals is the world's premier precious metals streaming company. The company indicated that its business model offers investors leverage to commodity prices and exploration upside but with a much lower risk profile than a traditional mining company.
