Published: December 9, 2024 |

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Allied Gold Corporation has entered into final documentation for a streaming transaction with Wheaton Precious Metals (WPMI). Allied will receive an aggregate $175 million upfront cash payment to support the funding of its growth strategy underpinned by the development of its low-cost, fully permitted, and highly prolific Kurmuk project in Ethiopia.

The stream transaction with WPMI strongly endorses the quality and significant value of the Kurmuk project, and the ongoing execution and exploration efforts being carried out by the company. This stream transaction further advances the company’s financial strategy during its transformative growth phase at an attractive cost of capital, contributing to de-risking Kurmuk’s execution with a comprehensive financing package supporting the advancement of initiatives to unlock further upside potential and maximize shareholder value.

“We are delighted to partner with Wheaton on this streaming financing. This began as a multi-party process although it soon became apparent to us that Wheaton would be our partner of choice. They conducted detailed and extensive diligence, were supportive of our efforts, worked with us in evaluating and considering optimization opportunities, and recognized the inherent value of our Kurmuk project,” said Peter Marrone, Allied chairman and CEO.

“We take our sustainability programs seriously, and it was a delight to see Wheaton not only support these programs but provide suggested improvements. The stream financing now allows us to complete the gold prepay which is the final component of our planned comprehensive financing package for the development of the Kurmuk project. We expect the Kurmuk mine will become one of the more significant precious metal mines in the world delivering significant production and cash flow following its construction,” added Marrone.

“Wheaton is pleased to announce a streaming agreement with Allied to advance the construction of the Kurmuk project, which is set to be the first commercial gold mine in Ethiopia,” said Randy Smallwood, president and CEO of Wheaton Precious Metals.

“This fully permitted, high quality development project offers significant exploration potential, supported by a team at Allied with a proven operating track record. We are excited to partner with Allied to unlock opportunities that empower the local communities and help drive the growth of Ethiopia’s emerging metals and mining sector,” added Smallwood.

The Kurmuk project is located in western Ethiopia within the metal prolific Arabian-Nubian Shield, and approximately 500 kilometers from the capital Addis Ababa. Allied is targeting an initial production of approximately 270,000 gold ounces in the first five years and an average life of mine production of 240,000 gold ounces per annum.

The Kurmuk project is fully permitted and currently in construction with first gold planned by the second quarter of 2026. Earthworks, camp construction along with engineering and procurement are progressing well with the project remaining on track and on budget.

Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment which operates a portfolio of three producing assets and development projects located in Côte d’Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational and development experience and proven success in creating value, Allied is progressing through exploration, construction, and operational enhancements to become a mid-tier next generation gold producer in Africa and ultimately a leading senior global gold producer.

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