Canadian Mining Journal


GOLD-PALLADIUM: Wheaton closes streaming deal on Stillwater

Underground mining at the Stillwater precious metals mine in Montana. (Image: Sibanye-Stillwater)

VANCOUVER – Wheaton Precious Metals Corp. has completed the gold and palladium streaming agreement with Sibanye Gold of South Africa for the Stillwater precious metals project, including the East Boulder mine in Montana. Wheaton made an initial payment of US$500 million.

The investment entitles Wheaton to 100% of the gold output from Stillwater over the life of the mine. It will also receive 4.5% of the palladium production until 375,000 oz. are delivered to Wheaton. Then the company will receive 2.25% of the palladium output until 550,000 oz. are delivered, and finally 1% of palladium output for the life of the project.

Wheaton will also make ongoing payments equal to a maximum of 18% of the spot gold price and spot palladium price until the balance of the upfront cash payment is reduced to zero. Thereafter, ongoing payments will be 22% of the spot prices for gold and palladium.

The streaming agreement pertains to the Stillwater gold project about 85 km southwest of Billings, Mont. Production began in September 1986, and commencing in 2019 output will be 14,700 oz. of gold and 24,000 oz. of palladium per year. The project is expected to operate at least 22 years.

More terms of the arrangement are available at