Wheaton Precious Metals Secures Gold Stream Agreement with Allied Gold for Kurmuk Project in Ethiopia

Highlights

• $175 Million Gold Stream: Wheaton Precious Metals agrees to pay Allied Gold $175 million in upfront consideration for the Kurmuk Project.
• Gold Stream Terms: Wheaton will purchase 6.7% of the payable gold until 220,000 ounces are delivered, with production expected to average 16,000 ounces annually for the first decade.
• Strategic ESG Commitments: Allied commits to adhering to global sustainability standards, aligning with Wheaton's environmental and social governance requirements.

Wheaton Precious Metals™ Corp. (LSE:WPM) has entered into a significant Gold Stream agreement with Allied Gold Corporation for the development of the Kurmuk Project in Ethiopia. This agreement, formalized through Wheaton's wholly-owned subsidiary, Wheaton Precious Metals International Ltd. ("WPMI"), sets the stage for future gold production from the Kurmuk Project, with Wheaton providing $175 million in upfront consideration and securing a portion of the project’s gold production.

Key Terms of the Gold Stream Agreement

The Gold Stream agreement outlines a series of important financial commitments and production forecasts:

• Upfront Payment: Wheaton will provide Allied with an upfront cash consideration of $175 million, which will be paid in four equal installments during the construction phase of the project, contingent on customary conditions.

• Streamed Metal and Payment Structure: Under the terms of the agreement, Wheaton will purchase 6.7% of the payable gold produced from the Kurmuk Project until 220,000 ounces ("Koz") of gold are delivered. After this threshold, the percentage decreases to 4.8% for the remainder of the mine life. If the project incurs debt exceeding $150 million, the percentage will temporarily increase to 7.15%. Wheaton’s ongoing payments for delivered gold will be 15% of the spot price at the time of delivery.

• Production Outlook: The project is forecast to produce an average of over 16,000 ounces of gold per year over the first 10 years, with a total mine life expected to span 11 years based on proven reserves. The mine is expected to begin production in mid-2026, with additional upside from exploration and resource expansion.

• Resource Growth: The addition of the Kurmuk Project will increase Wheaton's Proven and Probable Mineral gold reserves by 180,000 ounces, Measured and Indicated Mineral resources by 30,000 ounces, and Inferred resources by 20,000 ounces.

Additional Terms and Considerations

Wheaton has secured several strategic rights in the agreement, including:

• Right of First Refusal: WPMI holds a right of first refusal on any future precious metal streams or similar transactions related to the Kurmuk Project.

• Completion Test and Guarantees: The Gold Stream includes a completion test based on expected gold production, with guarantees and security provided by Allied and certain subsidiaries.

• Environmental and Social Responsibility: Allied is committed to adhering to various international standards concerning environmental, social, and governance (ESG) matters, ensuring the project aligns with Wheaton’s ESG expectations.

• Equity Financing Participation: Wheaton participated in Allied’s recent equity financing, investing C$20.15 million as part of a larger C$221 million raise completed on October 18, 2024.

Strategic Positioning and Financing

Wheaton's robust financial position, with approximately $694 million in cash reserves as of September 30, 2024, combined with a $2 billion revolving credit facility, positions the company well to fund the Gold Stream agreement and support its ongoing operations. The company’s liquidity and cash flow will also provide flexibility for future acquisitions and investments in accretive mineral stream interests.

About Allied Gold and the Kurmuk Project

Allied Gold Corporation (TSX: AAUC, OTCQX: AAUCF) is an international gold mining company with a diversified portfolio of assets. The Kurmuk Project, located in Ethiopia, is part of Allied’s long-term growth strategy, with significant potential for expansion and upside in gold production.