06:56 AM EST, 12/06/2024 (MT Newswires) -- Wheaton Precious Metals Corp ( WPM ) said Friday that its subsidiary Wheaton Precious Metals International entered into a definitive precious metals purchase agreement with Allied Gold for the Kurmuk project in Ethiopia.

The company said it will pay Allied upfront cash of $175 million in four equal installment payments during construction. The first production is anticipated in mid-2026.

Wheaton will purchase 6.7% of the payable gold until a total of 220,000 ounces of gold has been delivered, at which point it will purchase 4.8% of the payable gold for the life of the mine.

The company said it has enough cash on hand and available credit under its $2 billion revolving term loan, along with ongoing operating cash flows, to fund the acquisition of the gold stream and all other outstanding commitments.