KGL Resources (ASX:KGL) formalised a US$300 million precious metals purchase agreement with Wheaton Precious Metals International, marking a milestone for the Jervois Copper Project in Australia's Northern Territory.
The "streaming arrangement" provides a substantial capital injection to fund the construction and development of the site.
The funding package is structured to support the project's immediate and long-term needs, comprising a US$275 million stream upfront consideration and a US$25 million contingent cost overrun facility.
An initial "early deposit" of US$32 million will be made available prior to construction expenditure, with the remaining US$243 million released in four distinct tranches upon reaching specific development milestones.
The agreement is secured against silver and gold production, leaving KGL’s primary copper output unencumbered and fully exposed to favourable market conditions.
The PMPA offers several financial advantages, including the absence of traditional fixed repayment obligations and project-style covenants, which de-risks the project during its critical commissioning and ramp-up phases.
Wheaton has committed to participating in future equity raises up to $35 million.
As KGL finalises its process plant construction contracts and updates its 2025 feasibility study, this partnership ensures the Jervois Project remains well-capitalised.
An updated technical and economic framework is expected by May.