Wheaton Precious Metals financing commitment plays a pivotal role in the proposed acquisition of the Hemlo Mine by Carcetti Capital. This transaction not only underscores Wheaton’s strategic approach to asset-backed funding but also supports long-term production visibility in a politically secure jurisdiction.

A Structured and Strategic Financing Package

Wheaton Precious Metals has agreed to provide a financing package comprising:

• A US$400 million gold stream, forming the cornerstone of the transaction;
• Equity participation of up to US$50 million (or 20% of the total equity raise, whichever is lower);
• A US$200 million acquisition facility provided through bank debt.

This capital structure enables Carcetti Capital, soon to be renamed Hemlo Mining Corp. (HMC)—to complete the acquisition and invest in optimisation of the Hemlo operations.

Stream Terms and Production Profile

Under the terms of the gold stream:

• Wheaton will initially acquire 13.5% of payable gold, decreasing to 9.0% and then 6.0% as volume thresholds are met;
• If gold deliveries fall more than 10,000 ounces behind schedule (post-2033), the stream percentage will temporarily increase by 5% to mitigate delays;
• For gold sourced from Interlake deposit claims, the applicable stream rate is halved.

This structured decline ensures Wheaton captures maximum early-cycle output while providing flexibility to the operator.

Long-Term Production and Reserve Impact

The Hemlo Mine is expected to yield:

• ≈20,000 ounces of gold annually during the first decade;
• An average of 17,000 ounces per year over its estimated 14-year mine life.

The deal adds an immediate 250,000 ounces to Wheaton’s Proven and Probable gold reserves, with additional Measured and Indicated resources of 0.08 Moz, and 0.04 Moz classified as Inferred.

Strategic Location and ESG Alignment

Situated in Ontario, Canada, Hemlo benefits from:

• A low geopolitical risk profile;
• Decades of operational history and existing underground infrastructure;
• Considerable brownfield exploration potential.

Furthermore, HMC is required to comply with leading ESG frameworks including the Global Industry Standard on Tailings Management and Towards Sustainable Mining. These commitments align with Wheaton’s responsible investment philosophy.

Strong Balance Sheet Supports Flexibility

As of June 2025, Wheaton held:

• US$1.0 billion in cash;
• A US$2.0 billion revolving credit facility.

This financial capacity allows the company to support the gold stream while preserving flexibility for future transactions and contingencies.

Anticipated Transaction Timeline

The acquisition is expected to close during Q4 2025, contingent upon the execution of definitive agreements and regulatory approvals.

Strategic Implications

This transaction reflects the evolving role of streaming companies in major M&A activity. By combining a traditional streaming model with direct equity participation, Wheaton not only secures long-term production but also aligns interests with the mine operator. This structure mitigates risk, enhances returns, and positions Wheaton to benefit from potential upside as Hemlo’s full value is unlocked.