The company will also pay $20 million to an affiliate of Dalradian Gold on an early deposit basis relative to the Curraghinalt Stream, with an additional $55 million being paid during construction of the Curraghinalt project, subject to various customary conditions being satisfied.
“The acquisition of these diverse, high-quality streams fits seamlessly into our portfolio of high-margin, low-cost assets, with near-term production from Platreef significantly adding to our already robust growth profile,” Wheaton CEO Randy Smallwood said in a statement.
According to Ivanhoe, Platreef is the world’s largest undeveloped precious metals project. Attributable production is forecast to average over 13,000 oz of gold and 8,500 oz for each of palladium and platinum per year for the first 10 years, increasing to over 24,000 oz of gold and 13,500 oz for each of palladium and platinum the following 10 years.
Commercial production is expected in the fourth quarter of 2024.
Shares of Wheaton Precious Metals rose 3% in late morning trading on Thursday. The company has a $20.7 billion market capitalization.