Wheaton Precious Metals Corp. (WPM) Bolsters Gold Portfolio with Spanish Mountain Royalty Deal

Wheaton Precious Metals Corp (NYSE:WPM) is one of Goldman Sachs top gold stock picks. On April 21, Wheaton Precious Metals Corp (NYSE:WPM) entered into a royalty agreement with Spanish Mountain Gold.

Under the terms of the agreement, Wheaton is to acquire 1.5% net smelter return royalty on gold and silver production from the Spanish Mountain Gold Project. The company must pay $55 million under the agreement in three installments.

The first installment of $22.5 million is to be made within the next few weeks, with the second of $12.5 million on completion of 60,000 meters of drilling at the project. The final receipt of $20 million is to be made on the receipt of approvals under the Environmental Assessment Act (British Columbia). The payment is poised to strengthen Spanish Mountain Gold as an emerging precious metals developer.

Earlier, Wheaton Precious Metals Corp., a subsidiary, entered into a precious metals purchase agreement with KGL Resources for a portion of the gold and silver produced at the Jervois project in Australia. The company is to make an upfront payment of $275 million.

Wheaton Precious Metals Corp. (NYSE:WPM) is a premier precious metals streaming company that acts as a financier for mining companies. By providing upfront capital, Wheaton secures the rights to buy a portion of future gold, silver, palladium, platinum, and cobalt production at fixed, reduced prices.

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