Canadian miner signs Chile gold deal

Photo: Wheaton

Canada’s Wheaton Precious Metals has announced it has entered into a definitive agreement with Capstone Mining Corp. re-garding the Santo Domingo project in Chile’s Atacama region.


“Upon closing, Wheaton International will purchase 100% of the payable gold production until 285 thousand ounces … have been delivered, there-after dropping to 67% of payable gold production for the life of the mine,” the Canadian miner said in a statement.


“Wheaton International will pay Capstone a total upfront cash considera-tion of US$290 million, … $30 million of which is payable upon closing and the remainder of which is payable during construction of the Santo Domingo project, subject to customary conditions being satisfied, includ-ing Capstone attaining sufficient financing to cover total expected capital expenditures,” according to the statement.


The Chilean mine’s attributable gold production is forecast to average 35,000 to 40,000 annually for the first five full years of production, and 25,000 to 30,000 oz for the first ten full years, Wheaton Precious Metals said.