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

KGL Resources (ASX:KGL,OTCPL:KGLLF) has entered into a US$300 million precious metals purchase agreement with royalty and streaming company Wheaton Precious Metals (TSX:WPM,NYSE:WPM).

The move will help fund the development of KGL's Jervois copper project in the Northern Territory.

The agreement, announced on April 2, 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 (509,800 tonnes of copper, 23.13 million ounces of silver and 213,130 ounces of gold).

The asset is fully permitted for development.

The streaming deal applies to silver and gold by-products only. KGL said 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 Sam Strohmayr, the company's CEO.

“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, keeping KGL on 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.

KGL is continuing to refine project parameters, including finalizing 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 a 2025 feasibility study update, with a further update anticipated by May of this year.

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