Wheaton's $275M Aussie Bet: Streaming Gold to Fund a Copper Future

VANCOUVER, BC – April 01, 2026 – Wheaton Precious Metals Corp. has made a significant strategic entry into the Australian market, announcing a US$275 million streaming agreement with KGL Resources Limited. The deal secures future gold and silver production from the Jervois Project in Australia's Northern Territory, providing the critical financing needed to construct what is poised to become the country's next major copper mine.

The landmark transaction marks Wheaton’s first in Australia, a top-tier global mining jurisdiction, and underscores a broader industry trend of leveraging precious metals by-products to fund the development of mines for critical industrial metals like copper.

A Strategic Leap Down Under

For Wheaton, one of the world's largest precious metals streaming companies, the Jervois agreement represents a calculated move to diversify its portfolio geographically and de-risk its asset base. By planting a flag in Australia, the company gains exposure to a politically stable region with a long and storied history of mining excellence.

"The Jervois project represents an important milestone for Wheaton as our first streaming transaction in Australia, one of the world's leading mining jurisdictions," said Haytham Hodaly, President and Chief Executive Officer of Wheaton. The deal aligns with the company's stated strategy of securing high-quality, long-life assets in premier jurisdictions, contributing to its ambitious growth targets of exceeding 800,000 gold equivalent ounces (GEOs) annually by 2028.

The Jervois stream is expected to contribute an average of approximately 5,800 ounces of gold and 770,000 ounces of silver per year for the first five full years of production. This not only adds a new stream of revenue but also significantly bolsters Wheaton's reserves, increasing its total estimated Proven and Probable gold and silver reserves by 92,000 ounces and 9.2 million ounces, respectively.

Streaming Fuels Australia's Next Major Copper Mine

At the heart of the deal is the innovative financing structure known as streaming. Wheaton will provide KGL Resources with an upfront payment of US$275 million, delivered in installments as construction milestones are met. In return, Wheaton will have the right to purchase a percentage of the gold and silver produced from the Jervois mine at a fixed price—just 20% of the spot price at the time of delivery. This provides KGL with immediate, non-dilutive capital, allowing it to maintain its development schedule without taking on excessive debt or issuing large amounts of new equity.

For KGL, the infusion of capital is a game-changer. "We are delighted to secure this significant capital commitment from a leading global precious metals streaming company as a major cornerstone partner in our financing strategy for the Jervois Project," stated Jeff Gerard, Executive Chairman of KGL. He noted that the immediate availability of early deposit payments of US$32 million ensures the project can maintain its schedule to break ground.

The funding paves the way for an 18-month construction phase on the fully permitted project. Based on a February 2025 Feasibility Study Update, the Jervois Project boasts robust economics, including a post-tax net present value (NPV) of A$405 million and an internal rate of return (IRR) of 24%. Crucially, the streaming agreement allows KGL to retain full exposure to the project's primary commodity: copper.

Powering the Green Transition from the Outback

The timing of the Jervois Project's development could not be more critical. As the world accelerates its transition toward a low-carbon economy, the demand for copper—a metal essential for electric vehicles, wind turbines, solar panels, and grid infrastructure—is projected to soar. The Jervois mine is positioned to become a key supplier of this vital metal from a stable, reliable source.

Wheaton's CEO Haytham Hodaly highlighted this strategic importance, stating, "As global efforts to transition to a low‑carbon economy accelerate, responsibly produced critical metals such as copper, sourced from politically stable jurisdictions, have never been more important."

This aligns perfectly with the Australian government's national priorities. The country's Critical Minerals Strategy 2023-2030 aims to grow its resources sector, with billions of dollars in federal support available through initiatives like the National Reconstruction Fund (NRF) and the Critical Minerals Facility. While copper is not officially on Australia's domestic critical minerals list, it is recognized as such by key allies like the United States and the European Union, and its role in the green transition is undisputed. The Jervois Project, which has already received all key environmental and mining approvals, exemplifies the type of development that is central to this national strategy.

A Closer Look at the Deal's Fine Print

The agreement is structured with tiered delivery thresholds to balance risk and reward. Wheaton will initially purchase 75% of the payable gold and silver until 45,000 ounces of gold and 4.3 million ounces of silver have been delivered. After this, the stream percentage drops to 37.5% and eventually to 25% for the remainder of the mine's life, which is currently projected at 10 years with significant potential for extension through further exploration.

To further de-risk the project's construction, the agreement includes several sophisticated provisions. Wheaton will provide an optional cost overrun facility of up to US$25 million for KGL. Furthermore, Wheaton has committed to participating in a future equity financing for KGL, potentially investing up to AU$35 million to support the project, while obtaining a right of first refusal on any future precious metal streams from Jervois.

With first production expected in the second half of 2027, the partnership between Wheaton and KGL showcases a modern, symbiotic financing model. It allows a streaming giant to expand its portfolio with a high-quality asset while empowering a developer to unlock the value of a nationally significant resource. As construction prepares to break ground in the Northern Territory, the deal is set to deliver both precious metals for investors and critical copper for a world in transition.