Wheaton Precious Metals (“Wheaton” or the “Company”) announces that its wholly owned subsidiary Wheaton Precious Metals International (“Wheaton International”) has agreed to a new precious metals purchase agreement (the “First Majestic PMPA”) relating to the San Dimas mine, in conjunction with the proposed transaction announced today under which First Majestic Silver (“First Majestic”) will acquire Primero Mining (“Primero”) pursuant to a plan of arrangement (the “Arrangement”).
Wheaton International has agreed to terminate the existing San Dimas silver purchase agreement with Primero (the “Existing SPA”) and enter into the First Majestic PMPA, which includes the following terms:
- 25% of gold production plus an additional amount of gold equal to 25% of silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from San Dimas
- For each ounce of gold delivered, Wheaton International will pay to First Majestic a production payment equal to the lesser of US$600/oz, subject to a 1% annual inflationary adjustment, and the prevailing market price
- First Majestic to provide a corporate guarantee; security to be limited to San Dimas assets
- Area of interest that is subject to the First Majestic PMPA remains unchanged from the Existing SPA