VANCOUVER, BC, July 5, 2022
/CNW/ - Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company")
is announcing that it has entered into a definitive agreement with
Hecla Mining Company ("Hecla") (NYSE: HL) to terminate its silver
stream on Alexco Resource Corp.'s ("Alexco") (NYSE American: AXU)
(TSX: AXU) Keno Hill Silver District ("Keno Hill") in the
Yukon, Canada for US$135 million.
"The termination of the Keno Hill stream further demonstrates
our ability to strategically identify opportunities both inside and
outside of our portfolio that create value for our shareholders and
positions Wheaton to continue to have one of the strongest balance
sheets in the industry. While we firmly believe that Keno Hill is a
high-quality district with significant exploration potential, given
recent announcements, the ability to obtain an immediate return on
the termination of the stream was too compelling to ignore," said
Randy Smallwood, Wheaton's President
and Chief Executive Officer. "We believe Hecla is well positioned to effectively mine
Keno Hill and maximize its full potential."
On July 5, 2022, Hecla announced its intention to acquire
Alexco through a definitive arrangement agreement, which
remains subject to shareholder and regulatory approvals. The
termination of the Keno Hill silver stream is conditional upon
Hecla completing its announced
proposed acquisition of Alexco together with other customary
approvals.
As consideration for the termination of the Keno Hill silver
stream, Hecla will issue to
Wheaton $135 million of Hecla common shares. Subsequent to the closing
of the termination of the Keno Hill silver stream, Wheaton will own
approximately 5.6% of Hecla's
issued and outstanding common shares. The exact number of
Hecla common shares to be issued
will be calculated immediately before the closing date.
Hecla is the largest primary
silver producer in the United
States. In addition to operating mines in Alaska, Idaho
and Québec, Canada, the Company
owns a number of exploration projects in world-class silver and
gold mining districts throughout North
America.
The closing of the transaction with Hecla, including the termination of the Keno
hill stream, is subject to Hecla
closing its acquisition of Alexco and other customary
conditions.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's precious metals purchase
agreement ("PMPA") counterparties. Forward-looking
statements, which are all statements other than statements of
historical fact, include, but are not limited to, the termination
of the Keno Hill silver stream to Hecla for $135
million and the satisfaction of each party's obligations in
accordance with definitive documentation relating to the
termination of the Keno Hill silver stream. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "projects", "intends", "anticipates" or "does not
anticipate", or "believes", "potential", or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to risks associated with any specific risks
relating to the termination of the Keno Hill silver stream and the
satisfaction of each party's obligations in accordance with the
terms of the definitive documentation relating to the termination
of the Keno Hill silver stream, and other risks discussed in the
section entitled "Description of the Business – Risk Factors" in
Wheaton's Annual Information Form available on SEDAR at
www.sedar.com, and in Wheaton's Form 40-F for the year ended
December 31, 2021 and Form 6-K filed
March 10, 2022 both available on
EDGAR at www.sec.gov, as well as the risks set out in Wheaton's
management's discussions and analysis for the period ended
December 31, 2021 available on SEDAR
and EDGAR (together, the "Disclosure"). Forward-looking statements
are based on assumptions management currently believes to be
reasonable, including (without limitation): the receipt of
$135 million from Hecla and the satisfaction of each party's
obligations in accordance with the terms of the definitive
documentation relating to the termination of the Keno Hill silver
stream, and such other assumptions and factors as set out in the
Disclosure. There can be no assurance that forward-looking
statements will prove to be accurate and even if events or results
described in the forward-looking statements are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, Wheaton. Readers
should not place undue reliance on forward-looking statements and
are cautioned that actual outcomes may vary. The forward-looking
statements included herein are for the purpose of providing readers
with information to assist them in understanding Wheaton's expected
financial and operational performance and may not be appropriate
for other purposes. Any forward-looking statement speaks only as of
the date on which it is made, reflects Wheaton's management's
current beliefs based on current information and will not be
updated except in accordance with applicable securities laws.
Although Wheaton has attempted to identify important factors that
could cause actual results, level of activity, performance or
achievements to differ materially from those contained in
forward‑looking statements, there may be other factors that cause
results, level of activity, performance or achievements not to be
as anticipated, estimated or intended.
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content:https://www.prnewswire.com/news-releases/wheaton-precious-metals-enters-into-agreement-to-terminate-its-existing-silver-stream-in-the-keno-hill-silver-district-301580460.html
SOURCE Wheaton Precious Metals Corp.