LONDON: Wheaton Precious Metals™ Corp. announced that it has signed a deal with Waterton Copper Corp. to buy 100% of the silver produced from the Mineral Park mine in Arizona, USA, for the life of the mine.
Wheaton will pay Waterton Copper $115 million in four installments during the construction phase of the mine, which is expected to be completed by the end of Q1 2025. Wheaton will also provide a secured debt facility of up to $25 million and have a right of first refusal on any future precious metals deals involving the mine.
The Mineral Park mine is a copper-molybdenum-silver project that was previously owned by Mercator Minerals Ltd., which filed for bankruptcy in 2014. Wheaton had a silver stream agreement with Mercator, but it was terminated in 2015. Waterton Copper acquired the mine in 2016 and has been working to optimize its operations and extend its mine life.
Wheaton’s President and CEO Randy Smallwood said that Wheaton is excited to bring Mineral Park back into its portfolio, given its long history with the mine and its potential. He also said that the deal supports Wheaton’s commitment to investing in critical metals that are produced responsibly within politically stable jurisdictions.
Waterton Copper’s Executive Chairman Isser Elishis said that Waterton Copper is delighted to have Wheaton’s support and that Waterton is investing approximately $600 million to upgrade the mine’s infrastructure and equipment, which are expected to result in decades of operational excellence.
According to Wheaton, the deal will increase its estimated silver reserves by 14.6 million ounces, silver resources by 18.4 million ounces and inferred silver resources by 16.2 million ounces. The company expects to receive an average of over 0.74 million ounces of silver per year from the mine, with a production payment of 18% to 22% of the spot price of silver.
Wheaton also said that it expects Waterton Copper and its subsidiary Origin Mining Company, LLC, which owns Mineral Park, to comply with Wheaton’s Partner/Supplier Code of Conduct, which outlines Wheaton’s expectations in regard to environmental, social and governance matters.