Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them
Capstone closes $150m Silver Stream agreement with Wheaton Precious Metals. (Credit: Free-Photos from Pixabay.)
Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) is pleased to announce that it has closed the previously announced Precious Metals Purchase Agreement (the “Stream Agreement”) with Wheaton Precious Metals International Ltd., a wholly-owned subsidiary of Wheaton Precious Metals Corp. (collectively, “Wheaton”). All conditions to complete the Stream Agreement have been fulfilled and Capstone has received $150 million from Wheaton for 50% of the silver production until 10 million ounces have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company’s Cozamin Mine in Zacatecas, Mexico (“Cozamin”). Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them.
“With a current net cash position, this transaction gives Capstone one of the strongest balance sheets amongst its peers,” said Darren Pylot, President & CEO of Capstone. “Additionally, we are expecting around one billion dollars of after-tax operating cash flow over the next three years in the current $4.00 copper price environment. We look forward to strengthening our partnership with Wheaton as we continue advanced discussions for a potential gold stream on Santo Domingo.”
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 70% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on the optimization of operations and assets in politically stable, mining friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.
Source: Company Press Release