New Gold Inc has agreed to sell the existing gold stream on its Blackwater Mine, Northwest of Quesnel.
Wheaton Precious Metal Corp will be purchasing the stream for an upfront cash consideration of 300 million dollars.
Afterwards, Wheaton will be entitled to 8 percent of gold produced at Blackwater, dropping to 4 percent once 280 thousand ounces of gold have been delivered.
Gold delivered through the stream is subject to an on-going cash price of 35 percent of the spot gold price.
In addition, New Gold has agreed to waive its right of first refusal on Wheaton’s purchase of a Blackwater silver stream from Artemis Gold.
Artemis, who wholly owns Blackwater, have also agreed to waive their right of first offer to acquire the New Gold gold stream.
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