Spanish Mountain Gold Secures $55M Royalty Deal with Wheaton Precious Metals
Event summary
- Spanish Mountain Gold sold a 1.5% NSR royalty on its Spanish Mountain Gold Project to Wheaton Precious Metals for $55M.
- The deal includes three installments: $22.5M upfront, $12.5M after 60,000 meters of drilling, and $20M upon environmental approvals.
- Spanish Mountain Gold aims to complete a feasibility study in 18 months, enabling a build decision in 2028.
- Wheaton can buy back one-third of the NSR if Spanish Mountain Gold undergoes a change of control by December 31, 2030.
The big picture
This deal underscores the strategic importance of the Spanish Mountain Gold Project in British Columbia's Cariboo Gold Corridor. Wheaton's investment highlights the project's long-term potential and aligns with the broader trend of streaming and royalty companies backing high-potential mining assets. The $55M infusion positions Spanish Mountain Gold to advance its feasibility study and move closer to a construction decision, reflecting the growing interest in developing Tier 1 mining jurisdictions.
What we're watching
- Execution Risk
- Whether Spanish Mountain Gold can meet the drilling and environmental approval milestones to secure the remaining installments.
- Strategic Alignment
- How Wheaton's investment aligns with its disciplined growth approach in established mining jurisdictions.
- Project Timelines
- The pace at which Spanish Mountain Gold advances its feasibility study and prepares for a 2028 build decision.
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