Wheaton pays $22.5M in first Spanish Mountain royalty tranche
What's the deal? Spanish Mountain Gold has closed the first tranche of its royalty financing deal with Wheaton Precious Metals, receiving $22.5M. A further $32.5M is available once the company meets certain conditions, bringing the total potential deal to $55M.
Spanish Mountain Gold is a Vancouver-based company focused on building what it calls the "greenest" gold mine in Canada at its 100%-owned Spanish Mountain Gold Project in British Columbia's Cariboo Gold Corridor.
Why now? The company is pushing to make a construction decision by 2028. It filed an updated preliminary economic assessment last August, and this royalty financing gives it capital to keep advancing the project toward that milestone.
What could go wrong? The remaining $32.5M hinges on satisfying undisclosed conditions precedent — meaning there's no guarantee the full amount will materialise. Mining projects in British Columbia also face permitting complexity and Indigenous consultation requirements that can slow timelines.
The signal: Royalty and streaming deals have become a preferred funding mechanism for junior miners that want to avoid diluting shareholders through equity raises. Wheaton Precious Metals, one of the world's largest precious metals streaming companies, continues to lock in future production from early-stage projects — a bet that gold prices will remain elevated long enough for these mines to reach production.
Read more: stocktitan.net
