Streaming company Wheaton Precious Metals is bringing the Mineral Park mine, in Arizona, US, back into its portfolio, announcing on Tuesday the acquisition of a new silver stream on the mine.
The company entered into a definitive precious metals purchase agreement with Waterton Copper in respect to the Mineral Park mine.
“Our unique understanding of Mineral Park, and its potential, positions us well to assist Waterton Copper in bringing the mine back into production in a sustainable manner,” commented Wheaton president and CEO Randy Smallwood.
Waterton is investing about $600-million to optimise Mineral Park, including significant capital investments in new crushers, secondary and pebble crushing circuits, as well as new higher-power semi-autogenous grinding mills.
“Waterton Copper is delighted to have Wheaton Precious Metals’ support,” said executive chairperson Isser Ellishis.
Wheaton will make an upfront cash payment of $115-million to Waterton during the construction phase.
Under the silver stream, Wheaton will purchase 100% of the payable silver from the project, which is forecast to average 0.69-million ounces a year for the first five years of production and 0.74-million ounces a year for the 12-year life-of-mine.
Construction of Mineral Park will be completed by the end of the first quarter 2025.
The addition of Mineral Park will increase Wheaton’s total estimated proven and probable reserves by 14.6-million ounces, measured and indicated mineral silver resources by 18.4-million ounces and inferred silver resources by 16.2-million ounces.
Silver Wheaton acquired a silver stream on Mineral Park in 2008, when it was owned and operated by Mercator Minerals. Mercator filed for bankruptcy protection in late 2014.