Spanish Mountain inks $55M royalty deal with Wheaton Precious Metals

Spanish Mountain Gold (TSX-V: SPA) has inked a $55 million royalty agreement with Wheaton Precious Metals (TSX: WPM) tied to its flagship project in British Columbia, Canada.

Wheaton will acquire a 1.5% net smelter return royalty on gold and silver production from the Spanish Mountain project, with proceeds paid in three instalments: $22.5 million in the coming weeks, $12.5 million after 60,000 metres of drilling, and $20 million upon receiving key construction and operating approvals.

“This financing secures the company’s vision and strategy as an emerging precious metals developer in the Tier 1 Cariboo District,” CEO Peter Mah said in a news release.

“It also propels the feasibility study forward,” which the company aims to complete within 18 months to support a construction decision in 2028,” he said.

The deal underscores continued investor appetite for large-scale Canadian gold projects and provides Spanish Mountain with staged funding tied to development milestones, as it advances one of British Columbia’s more prominent undeveloped deposits.