KGL Secures US$300 Million Streaming Deal with Wheaton for Jervois Project

KGL Resources (ASX:KGL) has entered a US$300 million precious metals streaming agreement with Wheaton Precious Metals (TSX:WPM,NYSE:WPM), a move that will help fund the development of its Jervois copper project in the Northern Territory.

The agreement includes US$275 million in upfront consideration and a US$25 million contingent cost overrun facility. Of the upfront portion, US$32 million will be available prior to construction, with the remaining US$243 million to be delivered in four tranches linked to construction milestones.

Jervois has a resource of 28.95 million tonnes at 1.76 percent copper, 24.8 grams per tonne (g/t) silver and 0.23 g/t gold (509.8 kilotonnes copper metal, 23.13 million ounces silver, 213.1 kilo ounces gold) and is fully permitted for development.

The streaming arrangement applies to silver and gold by-products only, and the company also said that the structure avoids traditional fixed repayment obligations and project finance-style covenants, reducing risk during construction and ramp-up.

“This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production,” said CEO Sam Strohmayr.

“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.”

The early deposit will be available upon satisfaction of customary conditions, allowing KGL to maintain its development schedule.

In addition to the streaming agreement, Wheaton has committed to participate in a future equity raise of up to AU$35 million, subject to certain conditions.

The company said it is continuing to refine project parameters, including finalising process plant construction scope, updating the production schedule and incorporating commodity price changes.

These updates are expected to result in increases to both capital costs and revenue forecasts compared to the 2025 feasibility study update, with a further update anticipated by May 2026.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.