Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) told investors it has received the first US$12 million payment from Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM) under a precious metals purchase agreement from its Cangrejos gold-copper project in El Oro Province, Ecuador.
Under the terms of the first early deposit payment and the Gold Stream, announced in May, the company said Wheaton will pay US$300 million for 6.6% of the payable gold produced from the Cangrejos project until 700,000 ounces have been delivered, followed by 4.8% thereafter.
Prior to construction, it will pay US$48 million as an early deposit, with the remaining US$252 million paid during construction, it added.
"Wheaton will make ongoing payments for the gold ounces delivered equal to 18% of the spot price of gold until the uncredited deposit is reduced to nil and 22% of the spot price of gold thereafter,” the company clarified in a statement.
Lumina Gold is focused on the 100%-owned Cangrejos gold-copper project, the largest primary gold deposit in Ecuador. The company has a successful track record in advancing and monetizing exploration projects, and its experienced management team has played a crucial role in the development of Cangrejos.
Contact the author at stephen.gunnion@proactiveinvestors.com