Wheaton acquires gold stream from Capstone’s Santo Domingo project

Wheaton Precious Metals (TSX, NYSE, LSE: WPM) has entered into a definitive precious metal purchase agreement with Capstone Mining (TSX: CS) for the Santo Domingo project in the Atacama region in Chile.

The company will purchase 100% of the payable gold production until 285,000 oz. have been delivered, then dropping to 67% of payable gold production for the life of the mine.

Wheaton will pay Capstone a total upfront cash consideration of US$290 million.

“Santo Domingo is an exceptional project that provides Wheaton with an additional near-term growth opportunity. The project is forecast to be a first-quartile copper producer with a long mine life, making it an ideal fit for Wheaton’s existing high-quality portfolio,” Randy Smallwood, Wheaton’s CEO said in a press release.

Attributable gold production is forecast to average 35,000 to 40,000 oz. per year for the first five full years of production and 25,000 to 30,000 oz. for the first ten full years.

Capstone expects major construction to start in late 2021 with the first full year of production forecast for 2024.

This story first appeared on www.MINING.com.