April 2 (Reuters) - Australian miner KGL Resources ( KGLLF )

said on Thursday it had entered into a $300 million

precious metals streaming deal with a unit of Canada's Wheaton

Precious Metals ( WPM ) for a part of the gold and silver

produced at its Jervois copper project.

Shares of KGL rose as much as 61.9% to A$0.340, logging

their best day since July, 2014.

The stock also hit its highest level since May 22, 2022.

Under the deal, Wheaton Precious Metals International will

provide up to $275 million in upfront funding, along with an

optional $25 million cost-overrun facility, KGL said in a

statement.

The upfront funding includes two $16 million installments

available before construction begins, subject to conditions

including regulatory approvals, with the remaining $243 million

payable in four equal tranches tied to construction milestones.

In return, Wheaton will purchase a portion of silver and

gold produced from the project, making ongoing payments equal to

20% of prevailing spot prices.

The streaming arrangement starts with 75% of payable silver

and gold production, before stepping down to lower percentages

once certain delivery thresholds are met.

The agreement includes protections against construction

delays, requiring additional metal deliveries if timelines slip,

as well as security over project and corporate assets, KGL said.

With key development and mining permits in place, KGL said

the financing marked a major step towards developing the Jervois

project and positioning the company as an Australian copper

producer.

The transaction represents Wheaton's first precious metals

streaming deal in Australia, following its entry into a

streaming agreement covering BHP's share of Peru's Antamina mine

announced in February.

Wheaton is one of the world's largest precious metals

streaming firms, focusing on gold and silver.