11:56 AM EST, 12/19/2024 (MT Newswires) -- Allied Gold ( AAUCF ) on Thursday said it received the first construction payment of US$43.75 million under its US$175 million streaming agreement with Wheaton Precious Metals ( WPM ) for the Kurmak project in Ethiopia.

The funds have been made available upon Allied satisfying the relevant Kurmuk stream agreement customary conditions.

Allied has also entered into a gold prepaid forward arrangement with lenders for a total advance amount of US$75 million. The prepay lenders will purchase 2,802 ounces of gold from Allied per month over 12 months, starting from October 2026. The lenders include National Bank of Canada (NA.TO), Macquarie Bank and Citibank.

The gold prepay arrangement is the latest component of the financial package for the construction and development of the Kurmuk project, the company said. Allied is targeting an initial production of 270,000 gold ounces annually over the first five years and an average life of mine production of 240,000 gold ounces per year.

Allied Gold ( AAUCF ) was last seen up $0.03 to $3.34 on the Toronto Stock Exchange.

Price: 3.34, Change: +0.02, Percent Change: +0.76