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VANCOUVER, BC, Dec. 11, 2020 /CNW/ – Wheaton Treasured Metals™ Corp. (“Wheaton” or the “Firm”) is happy to announce that its wholly-owned subsidiary, Wheaton Treasured Metals Worldwide Ltd. (“Wheaton Worldwide”) has entered right into a definitive Treasured Metallic Buy Settlement (the “Treasured Metallic Stream”) with Capstone Mining Corp. (“Capstone”) (TSX: CS) in respect to the Cozamin Mine situated in Zacatecas, Mexico. Wheaton Worldwide pays Capstone upfront money consideration of US$150 million upon closing for 50% of the silver manufacturing till 10 million ounces (“Moz”) have been delivered, thereafter dropping to 33% of silver manufacturing for the lifetime of the mine. As well as, Wheaton will make ongoing funds for silver ounces delivered equal to 10% of the spot silver value. The Treasured Metallic Stream is efficient December 1, 2020.

“Wheaton has an extended historical past with Capstone and Cozamin and welcomes the chance to carry again this primary quartile mine into our portfolio of low-cost, long-life property. Over the previous few years, Capstone has performed an intensive and profitable exploration and drill program, which has considerably elevated Cozamin’s mine life.  We consider, as does Capstone, that the very best is but to return for Cozamin,” mentioned Randy Smallwood, Wheaton’s President and Chief Govt Officer. “As well as, Wheaton is in superior discussions with Capstone concerning a possible gold stream on their Santo Domingo venture, which would supply extra near-term progress for the Firm.”

TRANSACTION HIGHLIGHTS

• Provides to Wheaton’s present high-quality portfolio
• Cozamin is a primary quartile copper mine¹ that has been operated by Capstone since 2006.
• Subsequent to the closing of this acquisition, the addition of Cozamin will improve Wheaton’s estimated Confirmed and Possible silver reserves by 6.8 Moz, Measured and Indicated silver assets by 10.5 Moz and Inferred silver assets by 9.5 Moz.² 
• Provides near-term manufacturing
• For the 5 years beginning in 2021, attributable silver manufacturing is forecast to common roughly 820 thousand ounces per 12 months.³
• Vital exploration upside potential
  As beforehand introduced throughout 2020 by Capstone:
• Confirmed and Possible silver reserves for Cozamin as of April 30, 2020, elevated by over 100% from the prior 12 months, and Measured and Indicated silver assets elevated by over 70%.
• Present drill program concentrating on down dip extension of key producing veins and Capstone is presently contemplating a one kilometer exploration drift to focus on continuation of mineralization alongside strike.
• Capstone is within the strategy of finishing a pre-feasibility examine of an underground paste backfill system for Cozamin that would doubtlessly improve the extraction ratio as mining pillars are presently excluded within the present mine plan.
• Vital exploration potential exists regionally.

TRANSACTION TERMS

• The Treasured Metallic Stream is efficient December 1, 2020.
• Wheaton Worldwide will probably be entitled to obtain 50% of the silver manufacturing till 10 Moz have been delivered, thereafter dropping to 33% of silver manufacturing for the lifetime of the mine.    
• Wheaton Worldwide pays Capstone money consideration of US$150 million upon closing of the Treasured Metallic Stream.
• Wheaton Worldwide will make ongoing funds for silver ounces delivered equal to 10% of the spot silver value.
• Silver deliveries are assured by Capstone.
• Closing of the transaction is anticipated to happen shortly following announcement and is topic to the completion of sure company issues and customary circumstances.

FINANCING THE TRANSACTION

The preliminary upfront money fee of US$150 million will probably be paid by utilizing quantities drawn from the Firm’s US$2 billion revolving credit score facility. At September 30, 2020, the Firm had roughly US$210 million of money available and roughly US$1.5 billion of remaining capability beneath the revolving credit score facility. With trailing four-quarter working money movement of roughly $690 million⁴, the Firm has ample capability to service the extra debt ensuing from this transaction, particularly given the low rate of interest and versatile nature of the covenants beneath the revolving credit score facility.

ABOUT CAPSTONE AND THE COZAMIN MINE

Capstone is a Canadian base metals mining firm, targeted on copper with two producing mines, the Cozamin copper-silver mine in Zacatecas State, Mexico and the Pinto Valley copper mine situated in Arizona, US. As well as, Capstone owns 70% of Santo Domingo, a big scale, fully-permitted, copper-iron-gold venture in Area III, Chile, in addition to a portfolio of exploration properties. Capstone’s technique is to concentrate on the optimization of operations and property in politically secure, mining pleasant areas, centered within the Americas.  

The underground Cozamin copper-silver-lead-zinc mine was commissioned in 2006 and has undergone two profitable expansions since that point. The mill produces copper, zinc, and lead concentrates which might be shipped to the port of Manzanillo for export to world markets. Exploration success has led to vital useful resource will increase and wonderful potential exists to proceed this growth. As a part of the Silverstone Assets acquisition in 2009, Wheaton acquired a treasured metals stream on Cozamin, which subsequently expired in 2017.

Attributable Mineral Reserves and Mineral Assets – Cozamin, efficient as of April 30, 2020

Mr. Neil Burns, Vice President of Technical Companies for Wheaton, is a “certified individual” as such time period is outlined beneath Nationwide Instrument 43-101 and has reviewed and permitted the technical disclosure on this information launch together with info on Mineral Reserves and Mineral Assets.

FINANCIAL ADVISOR

Fort Capital Companions acted as monetary advisor to Wheaton Worldwide.

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

This press launch comprises “forward-looking statements” inside the which means of the USA Non-public Securities Litigation Reform Act of 1995 and “forward-looking info” inside the which means of relevant Canadian securities laws in regards to the enterprise, operations and monetary efficiency of Wheaton and, in some situations, the enterprise, mining operations and efficiency of Wheaton’s treasured metals buy settlement (“PMPA“) counterparties. Ahead-looking statements, that are all statements aside from statements of historic reality, embrace, however are usually not restricted to, fee by Wheaton Worldwide of US$150 million to Capstone and the satisfaction of every get together’s obligations in accordance with the Treasured Metallic Stream settlement, the receipt by Wheaton Worldwide of silver manufacturing in respect of the Cozamin Mine, the long run value of commodities, the estimation of future manufacturing from mineral stream pursuits owned by Wheaton (the “Mining Operations”) (together with within the estimation of manufacturing, mill throughput, grades, recoveries and exploration potential), the estimation of mineral reserves and mineral assets (together with the estimation of reserve conversion charges) and the belief of such estimations and the graduation, timing and achievement of building, growth or enchancment initiatives by Wheaton’s PMPA counterparties at Mining Operations. Usually, these forward-looking statements could be recognized by way of forward-looking terminology resembling “plans”, “expects” or “doesn’t count on”, “is anticipated”, “finances”, “scheduled”, “estimates”, “forecasts”, “initiatives”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, “potential”, or variations of such phrases and phrases or statements that sure actions, occasions or outcomes “might”, “may”, “would”, “may” or “will probably be taken”, “happen” or “be achieved”. Ahead-looking statements are topic to recognized and unknown dangers, uncertainties and different elements that will trigger the precise outcomes, stage of exercise, efficiency or achievements of Wheaton to be materially completely different from these expressed or implied by such forward-looking statements, together with however not restricted to dangers related to any particular dangers regarding the satisfaction of every get together’s obligations in accordance with the phrases of the Treasured Metals Stream settlement, fluctuations within the value of commodities (together with Wheaton’s means to promote its treasured metals or cobalt manufacturing at acceptable costs or in any respect), the Mining Operations (together with fluctuations within the value of the first or different commodities mined at such operations, regulatory, political and different dangers of the jurisdictions wherein the Mining Operations are situated, precise outcomes of mining, dangers related to the exploration, growth, working, growth and enchancment of the Mining Operations, environmental and financial dangers of the Mining Operations, and modifications in venture parameters as plans proceed to be refined), and different dangers mentioned within the part entitled “Description of the Enterprise – Danger Elements” in Wheaton’s Annual Data Kind accessible on SEDAR at www.sedar.com, and in Wheaton’s Kind 40-F for the 12 months ended December 31, 2019 and Kind 6-Ok filed March 11, 2020 each accessible on EDGAR at www.sec.gov, in addition to the dangers set out in Wheaton’s administration’s discussions and evaluation for the durations ended March 31, 2020 and September 30, 2020 each accessible on SEDAR and EDGAR (collectively, the “Disclosure”). Ahead-looking statements are based mostly on assumptions administration presently believes to be affordable, together with (with out limitation): the fee of US$150 million to Capstone and the satisfaction of every get together’s obligations in accordance with the phrases of the Treasured Metallic Stream settlement, that there will probably be no materials antagonistic change available in the market value of commodities, that the Mining Operations will proceed to function and the mining initiatives will probably be accomplished in accordance with public statements and obtain their said manufacturing estimates, that the mineral reserve and mineral useful resource estimates from Mining Operations (together with reserve conversion charges) are correct, and such different assumptions and elements as set out within the Disclosure. There could be no assurance that forward-looking statements will show to be correct and even when occasions or outcomes described within the forward-looking statements are realized or considerably realized, there could be no assurance that they’ll have the anticipated penalties to, or results on, Wheaton. Readers shouldn’t place undue reliance on forward-looking statements and are cautioned that precise outcomes might fluctuate. The forward-looking statements included herein are for the aim of offering readers with info to help them in understanding Wheaton’s anticipated monetary and operational efficiency and is probably not applicable for different functions. Any ahead wanting assertion speaks solely as of the date on which it’s made, displays Wheaton’s administration’s present beliefs based mostly on present info and won’t be up to date besides in accordance with relevant securities legal guidelines. Though Wheaton has tried to determine vital elements that would trigger precise outcomes, stage of exercise, efficiency or achievements to vary materially from these contained in ahead‑wanting statements, there could also be different elements that trigger outcomes, stage of exercise, efficiency or achievements to not be as anticipated, estimated or meant.

CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES

For additional info on Mineral Reserves and Mineral Assets and on Wheaton extra typically, readers ought to seek advice from Wheaton’s Disclosure. Wheaton’s Mineral Reserves and Mineral Assets are topic to the {qualifications} and notes set forth therein. Mineral Assets which aren’t Mineral Reserves do not need demonstrated financial viability.

Cautionary Word to United States Buyers Regarding Estimates of Measured, Indicated and Inferred Assets: The knowledge contained herein has been ready in accordance with the necessities of the securities legal guidelines in impact in Canada, which differ from the necessities of United States securities legal guidelines. The phrases “mineral reserve”, “confirmed mineral reserve” and “possible mineral reserve” are Canadian mining phrases outlined in accordance with Canadian Nationwide Instrument 43-101 – Requirements of Disclosure for Mineral Tasks (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Requirements on Mineral Assets and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Requirements”). These definitions differ from the definitions in Business Information 7 (“SEC Business Information 7”) beneath the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). Beneath U.S. requirements, mineralization is probably not categorised as a “reserve” until the willpower has been made that the mineralization might be economically and legally produced or extracted on the time the reserve willpower is made. Additionally, beneath SEC Business Information 7 requirements, a “ultimate” or “bankable” feasibility examine is required to report reserves, the three-year historic common value is utilized in any reserve or money movement evaluation to designate reserves and the first environmental evaluation or report should be filed with the suitable governmental authority. As well as, the phrases “mineral useful resource”, “measured mineral useful resource”, “indicated mineral useful resource” and “inferred mineral useful resource” are outlined in and required to be disclosed by NI 43-101; nonetheless, these phrases are usually not outlined phrases beneath SEC Business Information 7 and are usually not permitted for use in studies and registration statements filed with the SEC. Buyers are cautioned to not assume that any half or all the mineral deposits in these classes will ever be transformed into reserves. “Inferred mineral assets” have a large amount of uncertainty as to their existence and as to their financial and authorized feasibility. It can’t be assumed that every one or any a part of an inferred mineral useful resource will ever be upgraded to the next class. Beneath Canadian guidelines, estimates of inferred mineral assets might not kind the idea of feasibility or pre-feasibility research, besides in uncommon circumstances. Buyers are cautioned to not assume that every one or any a part of an inferred mineral useful resource exists or is economically or legally mineable. Mineral assets that aren’t mineral reserves do not need demonstrated financial viability. Disclosure of “contained ounces” in a useful resource is permitted disclosure beneath Canadian rules; nonetheless, the SEC usually solely permits issuers to report mineralization that doesn’t represent “reserves” by SEC requirements as in place tonnage and grade regardless of unit measures. Accordingly, info contained herein that describes Wheaton’s mineral deposits is probably not similar to comparable info made public by U.S. corporations topic to reporting and disclosure necessities beneath the USA federal securities legal guidelines and the principles and rules thereunder. United States traders are urged to contemplate intently the disclosure in Wheaton’s Kind 40-F, a replica of which can be obtained from Wheaton or from EDGAR at www.sec.gov.

SOURCE Wheaton Treasured Metals Corp.

For additional info: Patrick Drouin, Senior Vice President, Investor Relations, Wheaton Treasured Metals Corp., Tel: 1-844-288-9878, Electronic mail: [email protected], Web site: www.wheatonpm.com

Associated Hyperlinks

http://www.silverwheaton.com/