Allens has advised KGL Resources Limited (KGL) on its precious metals streaming agreement with Wheaton Precious Metals International Ltd, a wholly owned subsidiary of Wheaton Precious Metals Corp (Wheaton). The agreement will, in part, fund construction and development of KGL’s Jervois Copper Project in the Northern Territory.
Under the agreement, Wheaton will provide a US$275 million construction facility and a US$25 million contingent cost overrun facility. The construction facility is payable in tranches: US$32 million in two equal payments available prior to additional construction expenditure, and US$243 million available in ongoing payments following the achievement of certain milestones. In exchange, Wheaton will have exposure to the gold and silver produced from KGL's Jervois Copper Project, while leaving KGL with full exposure to the copper.
‘This is a landmark transaction for both KGL and the Australian mining finance market. Streaming arrangements are becoming an increasingly attractive option for long‑life projects with precious metals by-products, and we’re proud to have supported KGL in securing a structure that will help develop the Jervois Copper Project. It’s exciting to see global investment models like Wheaton’s being adapted to the Australian context,’ said partner Rod Aldus.
'Having a significant capital commitment from a major partner like Wheaton in the form of a streaming arrangement provides a great opportunity for KGL to advance towards production. Given the need for critical minerals worldwide, we think additional sources of funding coming into our market is a major positive for Australian miners,' said managing associate Alexander Ninkov.
While metal streaming arrangements are well established globally, their increasing use in Australia reflects a significant shift in how complex, long‑life mining projects are funded and structured. This transaction signals growing interest in streaming as a funding option in the Australian market.
The deal required close collaboration across Allens’ banking, corporate and specialist regulatory teams. The firm’s integrated approach enabled it to advise KGL on this innovative financing, building on Allens’ extensive experience in the mining sector.
Allens legal team
Finance, Banking & Debt Capital
Rod Aldus (Partner), Alastair Henderson (Senior Associate), Megan Lee (Associate), Siena Ellison (Lawyer)
M&A and Capital Markets
Alexander Ninkov (Managing Associate), Lennard Bremer (Associate), Georgina Holborn (Lawyer)