Koné

Project Overview

The Koné Project is located approximately 350 kilometres north-west of Yamoussoukro, the political capital of Côte d’Ivoire, and approximately 600-km northwest of Abidjan, the commercial capital of the country.

The Project consists of the Koné and Gbongogo deposits, which are hosted in quartz-diorite intrusions that were emplaced within dilational bends of a regional NNE-SSW oriented shear zone hosted within Birimian aged volcaniclastic rocks. Mineralization at the Koné deposit is generally disseminated in fine-grained pyrite, with higher grades associated with high-density swarms of 2-mm to 5-mm thick, foliation-parallel, quartz veinlets containing fine-grained sulfide. The Gbongogo deposit generally hosts higher grade mineralization relative to Koné. It correlates with the presence of a quartz and/or tourmaline stockwork and alteration selvages within a plunging quartz diorite that has undergone brittle deformation.

Both deposits will be mined by open-pit methods with the Koné deposit exploited by a smaller North Pit and larger South Pit, and the Gbongogo deposit by a single pit. Processing will be at a nominal rate of 11.0 Mtpa through a conventional Leach-CIP plant. Tailings will be deposited initially in a TSF confined by a cross-valley embankment, and when mining in the Koné South Pit is completed, deposited in-pit.

Stream Details

Date of Contract	23-Oct-24
Term of Stream	Life of Mine
Stream Parameters	19.5% of Au until 400 koz, then 10.8% of Au until an additional 130 koz, then 5.4% of Au for life of mine thereafter*
Upfront Consideration	$625M
Delivery Payment Per Ounce	20% of spot price of gold**
Cost Quartile	Third

*Once the Company has received 400,000 ounces of gold under the Koné PMPA, subject to adjustment if there are delays in deliveries relative to an agreed schedule, the attributable gold production will reduce to 10.8% until an additional 130,000 ounces of gold has been delivered, after which the stream drops to 5.4%.

**For the first five years after the Precious Metals Purchase Agreement (“PMPA”) is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100/oz or greater than $2,700/oz. For example, if spot gold is $3,200 per ounce, Wheaton’s production payment would be $675 per ounce, equating to 21% of the spot price. This price adjustment mechanism expires on the fifth anniversary of the PMPA, after which the production payment will be equal to 20% of the spot price going forward.