Wheaton acquires $300m gold stream on Lumina’s Cangrejos project
Royalty and streaming group Wheaton Precious Metals has added the gold stream on the Cangrejos project of Lumina Gold to its portfolio of assets, the companies announced on Tuesday.
Wheaton will pay TSX-V-listed Lumina $300-million, comprising $48-million of preconstruction funding and $252-million of construction funding.
"This transaction validates the extensive technical work that the Lumina Group has completed on Cangrejos since 2014. It will de-risk the execution of the Cangrejos project and form a significant part of the $1-billion of required construction capital,” commented Lumina founder and largest shareholder, Ross Beaty.
Cangrejos is forecast to be a high-margin mine in the lowest half of the cost curve with a 26-year mine life.
Under the gold stream, Wheaton will purchase 6.6% of the payable gold from the project until 700 000 oz has been delivered, at which point the stream will be reduced to 4.4% of the payable gold production for the life-of-mine (LoM).
Wheaton is expecting attributable production of more than 24 000 oz/y for the first ten years of production and more than 4 500 oz/y for the LoM.
The addition of Cangrejos will increase Wheaton's total estimated proven and probable gold reserves by 0.76-million ounces, measured and indicated gold resources by 0.25-million ounces, and inferred gold resources by 0.16-million ounces.
In addition, Wheaton believes there is strong exploration potential within the Cangrejos property.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
