Wheaton, Allied Gold Corp ink deal for Kurmuk Project
Wheaton Precious Metals™ Corp. and its subsidiary, Wheaton Precious Metals International Ltd. (WPMI), have entered into a definitive precious metals purchase agreement with Allied Gold Corp. and Allied Gold Services Inc. for the Kurmuk Project in Ethiopia. This project, poised to become Ethiopia’s first commercial gold mine, represents a significant step in advancing the country’s emerging metals and mining sector.
Wheaton Precious Metals will provide streaming financing to support the construction of the Kurmuk Project. Allied Gold will leverage the financing to complete a comprehensive funding package, including a gold prepay facility led by its lending syndicate.
Kurmuk Project
The Kurmuk Project is a fully permitted, high-quality development with extensive exploration potential. Once operational, the mine is expected to rank as one of the world’s significant precious metal producers, contributing robust production and cash flow.
Wheaton’s investment and diligence highlighted their commitment to the project’s optimization and sustainability. Allied Gold has praised Wheaton as a preferred partner, citing their collaborative approach and shared commitment to environmental and social sustainability.
Wheaton supports Allied’s sustainability programs and has suggested enhancements to further empower local communities and improve environmental impact. Wheaton has also acquired a stake in Allied Gold through its recent equity financing, aligning both parties’ interests in the success of the Kurmuk Project.
The partnership between Wheaton Precious Metals and Allied Gold Corp. not only marks a pivotal moment for Ethiopia’s mining industry but also underscores the growing importance of sustainability and community engagement in mining projects. The Kurmuk Project is expected to catalyze economic growth in the region while delivering substantial returns for stakeholders.
