WPM.TO · 2023-11-15 12:00:00

Wheaton Precious Metals Announces the Acquisition of Existing Streams from Orion Mine Finance Including the Platreef and Kudz Ze Kayah Projects, and Enters into a New Stream on the Curraghinalt Project

Mergers & Acquisitions

November 15, 2023

Vancouver, British Columbia

Wheaton Precious Metals Announces the Acquisition of Existing Streams from

Orion Mine Finance Including the Platreef and Kudz Ze Kayah Projects, and Enters

into a New Stream on the Curraghinalt Project

Vancouver, British Columbia – Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”)

is pleased to announce Wheaton and its wholly -owned subsidiary, Wheaton Precious Metals

International Ltd. (“Wheaton International”) have entered into a definitive agreement with certain

entities advised by Orion Resource Partners (“Orion”) to acquire existing streams in respect of

Ivanhoe Mines ’ Platreef Project (the “Platreef Stream s”) and BMC Minerals ’ Kudz Ze Kayah

Project (the “Kudz Ze Kayah Streams”). In addition, Wheaton International has entered into a new

precious metals purchase agreement for a gold stream in respect of Dalradian Gold’s Curraghinalt

Project (the “Curraghinalt Stream”).

“The acquisition of these diverse, high-quality streams fits seamlessly into our portfolio of high -

margin, low-cost assets, with near-term production from Platreef significantly adding to our already

robust growth profile,” said Randy Smallwood, Wheaton’s President and Chief Executive Officer.

“This Project has been significantly de -risked given the advancement of construction and

development and is forecast to deliver significant precious metals production to Wheaton ,

commencing next year. We are also very impressed with Ivanhoe’s progress in working with the

community and other stakeholders as it rapidly advances the Project towards production.”

Closing of the acquisition of the Platreef, Kudz Ze Kayah and Curraghinalt Streams is subject to

typical terms and conditions and anticipated to occur within the fourth quarter of 2023 or early first

quarter of 2024.

Transaction Details

(All values in US$ unless otherwise noted)

▪ Consideration: Wheaton and Wheaton International will pay total upfront cash

consideration of $530 million as follows:

o $450 million will be paid to Orion on the closing of the acquisition of the Platreef

Streams and Kudz Ze Kayah Streams, with an additional $5 million contingency

payment in respect of the Kudz Ze Kayah Stream; and

o $20 million will be paid to an affiliate of Dalradian Gold on an early deposit basis

relative to the Curraghinalt Stream, with an additional $55 million being paid during

construction of the Curraghinalt Project, subject to various customary conditions

being satisfied.

Platreef Project (majority owned by Ivanhoe Mines, the “Platreef Streams”)

▪ Location: Located approximately 280 kilometres (“km”) north-east of Johannesburg, in

the Limpopo province of South Africa

▪ Streamed Metals:

o Under the Platreef Project gold stream agreement, Wheaton International will be

entitled to purchase 62.5% of the payable gold until a total of 218,750 ounces (“oz”)

of gold has been delivered to Wheaton International under the gold stream 1, at

which point Wheaton International will be entitled to purchase 50% of the payable

gold production until a total of 428,300 oz of gold has been delivered to Wheaton

International under the gold stream , at which point Wheaton International will be

entitled to purchase 3.125% of the payable gold production if certain conditions

are met.

o In addition, under the Platreef Project palladium and platinum streams agreement,

Wheaton International will purchase 5.25% of the payable palladium and platinum

until a total of 350,000 oz of combined palladium and platinum have been received,

at which point the stream will be reduced to 3.0% of the payable palladium and

platinum production until 485, 115 oz have been delivered, at which point the

stream will be reduced to 0.1% of the payable palladium and platinum production

if certain conditions are met.

▪ Production Profile2: Attributable production is forecast to average over 13,000 oz of gold

and 8,500 oz of each of palladium and platinum per yea r for the first ten years of

production, increasing to over 2 4,000 oz of gold and 1 3,500 oz of each palladium and

platinum per year for the following ten years of production.

▪ Production Payments:

o Under the Platreef Project gold stream agreement, Wheaton International will

make ongoing payments for the gold ounces delivered equal to $100/oz until a

total of 428,300 oz of gold have been delivered under the gold stream, increasing

to 80% of the spot price of gold thereafter.

o Under the Platreef Project palladium and platinum streams agreement, Wheaton

International will make ongoing payments for the palladium and platinum ounces

delivered equal to 30% of the respective spot prices until 485, 115 combined

ounces have been received, increasing to 80% of the spot price of palladium and

platinum thereafter.

▪ Incremental Reserves and Resources2:

o The addition of the Platreef gold stream will increase Wheaton’s total estimated

Proven and Probable gold reserves by 0.67 million ounces (“Moz”), Measured and

Indicated gold resources by 0.07 Moz, and Inferred gold resources by 0.13 Moz.

o The addition of the Platreef palladium stream will increase Wheaton’s total

estimated Proven and Probable palladium reserves by 0.35 Moz, Measured and

1 Under the existing Platreef Project gold stream agreement, Sandstorm Gold Ltd. (formerly Nomad Royalty Ltd.)

(“Sandstorm”) is entitled to purchase 37.5% of payable gold. The decrease in the percentage of payable metal that

Wheaton International will be entitled to purchase is conditional on delivery of the total amount of payable metal to

all purchasers (Wheaton International and Sandstorm combined). The values listed under ‘Streamed Metal’ pertain

only to Wheaton International’s share of the payable gold.

Indicated palladium resources by 0.01 Moz, and Inferred palladium resources by

0.02 Moz.

o The addition of the Platreef platinum stream will increase Wheaton’s total

estimated Proven and Probable platinum reserves by 0.34 Moz, Measured and

Indicated platinum resources by 0.01 Moz, and Inferred platinum resources by 0.02

Moz.

▪ Other Considerations:

o The Platreef Project is fully permitted and currently under construction, with

commercial production expected in Q4 2024.

o Sustainability Considerations:

▪ Ivanhoe signed an offtake agreement with the Mogalakwena Local

Municipality (MLM) to provide local, treated water to supply the bulk water

needed for Platreef’s construction and operations. Recycling locally treated

water is a cost-effective and sustainable approach to securing water for the

mine’s production.

▪ In conformance with South Africa’s mining laws, the ownership structure at

the Platreef Project includes a 26% interest transferred to a B -BBEE

special purpose vehicle, comprised of 3% local non -managerial

employees, 3% local entrepreneurs and 20% in a tru st established for the

benefit of the 20 communities that surround the Platreef Project area (The

Bonega Communities Trust).

▪ The site has secured options to use electricity generated from renewable

energy and liquefied natural gas, providing a reliable source of energy with

fewer carbon dioxide emissions than South Africa’s coal -fired national

electrical grid.

o The Platreef Streams provide certain corporate guarantees and security over

assets of the Platreef Project until certain conditions are met.

Kudz Ze Kayah Project (owned by BMC Minerals, the “Kudz Ze Kayah Streams”)

▪ Location: Located in the northern Pelly Mountains, 115 km southeast of the Ross River

in south central Yukon, Canada.

▪ Streamed Metals: Under the Kudz Ze Kayah Streams and dependent on the timing of

deliveries, the Company will be entitled to purchase: staged percentages of payable gold

and payable silver ranging from 6.875% to 7.375% until 330,000 oz of gold and

43,300,000 oz of silver are produced and delivered, reducing to a range of 5.625% to

6.125% until a further 59,800 oz of gold and 7,958,000 oz of silver are produced and

delivered, further reducing to a range of 5.000% to 5.500% until a further 270,200 oz of

gold and 35,342,000 oz of silver are produced and delivered (for a total of 660,000 oz of

gold and 86,600,000 oz of silver), and thereafter ranging between 6.25% and 6.75%.

▪ Production Profile 2: Life of mine annual attributable production is forecast to average

approximately 1,700 oz of gold and 230,000 oz of silver.

▪ Production Payments: Wheaton will make ongoing payments for the gold and silver

ounces delivered equal to 20% of the spot gold and silver price.

Incremental Reserves and Resources2:

o The addition of the Kudz Ze Kayah gold stream will increase Wheaton’s total

estimated Proven and Probable gold reserves by 0.05 Moz, Measured and

Indicated gold resources by 0.01 Moz, and Inferred gold resources by 0.002 Moz.

o The addition of the Kudz Ze Kayah silver stream will increase Wheaton’s total

estimated Proven and Probable silver reserves by 5.0 Moz, Measured and

Indicated silver resources by 1.4 Moz, and Inferred silver resources by 0.2 Moz.

▪ Permitting Status:

o The project received approval from th e Yukon Environment and Socio -economic

Assessment Board (“YESAB”) in June 2022. Two provincial permits are

outstanding being the water mining license and the quartz mining license.

o Wheaton has agreed to pay to Orion an additional $5 million contingency payment

if certain conditions are achieved.

o There is an ongoing lawsuit between the Kaska Nation and the governments of

Yukon and Canada over the government’s decision to approve the environmental

and socio-economic assessment, with the Kaska Nation arguing the governments

did not reasonably consult with First Nations. The Yukon Supreme Court heard the

case in April 2023 and a judgment is expected by the end of 2023.

▪ Other Considerations:

o Under the existing Kudz Ze Kayah Stream, BMC Minerals has a buyback option to

repurchase 50% of the gold and silver streams for a period of 30 days after June

22, 2026, for $36 million.

o The Kudz Ze Kayah Stream s provide certain corporate guarantees and security

over assets of the Kudz Ze Kayah Project until certain conditions are met.

Curraghinalt Project (owned by Dalradian Gold Limited, the “Curraghinalt Stream”)

▪ Location: Located approximately 115 km west of Belfast, in Northern Ireland, United

Kingdom.

▪ Streamed Metal : Under the Curraghinalt Stream, Wheaton International will purchase

3.05% of the payable gold until 125,000 oz of gold has been delivered, at which point the

stream will be reduced to 1.5% of the payable gold production for life of mine.

▪ Production Profile2: Attributable production is forecast to average approximately 4,400

oz of gold per year for the first ten years of production, averaging approximately 3,200 oz

of gold per year life of mine.

▪ Production Payments: Wheaton International will make ongoing payments for the gold

ounces delivered equal to 18% of the spot price of gold until the uncredited deposit is

reduced to nil and 22% of the spot price of gold thereafter.

▪ Incremental Reserves and Resources 2: The addition of the Curraghinalt stream will

increase Wheaton’s total estimated Proven and Probable gold reserves by 0.08 Moz and

Inferred gold resources by 0.07 Moz.

▪ Other Considerations:

o The Curraghinalt Project is in the final stages of the permitting process, with the

forecasted 2-year construction period anticipated to commence in 2025.

o In the event of a change of control, Dalradian may purchase one -third of the

Curraghinalt stream from Wheaton until the earlier of January 1, 2027 , or first

production.

o Dalradian and certain of its subsidiaries will provide Wheaton International with

corporate guarantees and certain other security over their assets.

o Once the complete financing package has been finalized, the stream percentages

will be subject to increases in the event that the existing stream held by Wheaton

International is subordinated to debt.

o Sustainability Considerations:

▪ Dalradian has submitted a planning application detailing its approach to

environmental protection and providing benefits to the local community.

▪ The Curraghinalt mine design features a reverse osmosis water treatment

plant, a dry stack tailings facility and a commitment to carbon neutrality

(supported by a supply of 100% renewable electricity). Dalradian expects

to hire 90% of its staff from the local area. This will be supported with an

investment of £15 million towards a training program over the initial three

years to assist local people to qualify for positions at the mine.

Financing the Transactions

As at September 30, 2023, the Company had approximately $834 million of cash on hand,

which when combined with the liquidity provided by the available credit under the $2 billion

revolving term loan and the strength of our ongoing operating cash flows, positions the

Company well to fund the acquisition of the Platreef, Kudz Ze Kayah and Curraghinalt streams,

as well as all outstanding commitments and known contingencies, and provides flexibility to

acquire additional accretive mineral stream interests.

_____________________

2 Please refer to the Attributable Mineral Reserves & Mineral Resources table in this news release for full disclosure of reserves

and resources associated with Platreef, Kudz Ze Kayah and Curraghinalt, including accompanying footnotes.

About Wheaton Precious Metals

Wheaton is the world's premier precious metals streaming company with the highest -quality

portfolio of long -life, low -cost assets. Its business model offers investors commodity price

leverage and exploration upside but with a much lower risk profile than a traditional mining

company. Wheaton delivers amongst the highest cash operating margins in the mining industry,

allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As

a result, Wheaton has consistently outperformed gold and silver, as well as other mining

investments. Wheaton is committed to strong ESG practices and giving back to the communities

where Wheaton and its mining partners operate. Wheaton creates sustainable value through

streaming for all of its stakeholders.

About Orion

Orion is an $8.2 billion (as of June 30, 2023) global asset management firm that specializes in

institutional investment strategies in precious and base metals and minerals, many of which are

currently leveraged to stimulus and infrastructure spend and the push to decarbonize.

Headquartered in NYC and with offices in Denver, London, and Sydney, Orion includes a team

of 80 professionals with backgrounds in metals finance, physical metals logistics and sales, and

in-house technical professionals responsible for risk assessment and portfolio management. For

more information visit www.orionresourcepartners.com

Attributable Gold Mineral Reserves and Mineral Resources – Platreef Project

Category Tonnage

Grade

Au g/t

Contained

Au Moz

Proven 0.0 0.00 0.00

Probable 69.8 0.30 0.67

P&P 69.8 0.30 0.67

Measured 0.0 0.00 0.00

Indicated 7.9 0.26 0.07

M&I 7.9 0.26 0.07

Inferred 15.8 0.26 0.13

Attributable Platinum & Palladium Mineral Reserves and Mineral Resources – Platreef Project