KGL Resources has signed a $300m precious metals purchase agreement (PMPA) with Wheaton Precious Metals International for silver and gold by-product streaming.
This agreement aims to support the construction and development of the Jervois Copper Project located in Australia’s Northern Territory.
The agreement stipulates a $275m stream upfront payment, comprising a $32m early deposit available before construction, and $243m in four tranches as construction milestones are achieved. Additionally, a $25m cost overrun facility is included.
All necessary permits for development and mining are in place, positioning KGL as a prominent future copper producer in Australia.
Wheaton’s participation in this streaming transaction marks its first in the country, following an earlier agreement related to BHP’s Antamina mine.
The funding secures KGL’s copper production exposure to the market.
The PMPA is limited to the Jervois tenements, excluding other KGL assets.
KGL CEO Sam Strohmayr said: “This partnership with Wheaton is the culmination of a significant amount of work and collaboration by KGL, our advisors and the Wheaton team. This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production.
“The near-term availability of the Early Deposit ensures we can maintain our development schedule, and we are now on the cusp of breaking ground on Australia’s next major copper mine.”
KGL is currently working to finalise the scope and costs of their process plant construction contract, update the production timeline, factor in potential price escalations, and adjust for changes in commodity prices.
This review may alter the technical and economic plans for the project’s delivery, as detailed in the 2025 feasibility study update.
The company anticipates higher overall project capital costs and revenue forecasts and expects to provide further information by May 2026, pending final review outcomes and board approval.
KGL is also in discussions with global traders, off-takers, and other financial entities to secure complete project funding.
Alongside the existing PMPA, Wheaton has agreed to invest in any future equity raising by KGL, up to A$35m or 20% of the shares offered, provided it occurs within a year of the PMPA.
Wheaton’s total company interest will remain below 9.9%.
“KGL Resources signs $300m agreement with Wheaton” was originally created and published by Mining Technology, a GlobalData owned brand.
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