Wheaton Precious Metals Commits $55 Million to Spanish Mountain Gold Through Strategic Royalty Agreement

Spanish Mountain Gold secures $55M from Wheaton Precious Metals for its BC project. Staged funding will support feasibility and drilling through 2028.

By: AXL Media

Published: Apr 22, 2026, 6:31 AM EDT

Source: Information for this report was sourced from MINING.COM

Capital Injection for the Cariboo District

Spanish Mountain Gold has successfully secured a $55 million financing arrangement with industry giant Wheaton Precious Metals, marking a significant milestone for its namesake project in British Columbia. Under the terms of the agreement, Wheaton will acquire a 1.5% net smelter return royalty on both gold and silver production from the site. This partnership provides the junior developer with a clear financial runway in one of Canada’s most prolific mining regions, the Tier 1 Cariboo District. The deal highlights a growing trend of major royalty companies seeking long-term exposure to large-scale, stable jurisdictions amid fluctuating global markets.

A Phased Approach to Development Funding

The agreement is structured as a series of performance-based payments designed to mitigate risk while ensuring steady progress. The initial installment of $22.5 million is expected to be delivered in the coming weeks, providing immediate liquidity for the company’s near-term goals. A second tranche of $12.5 million is contingent upon the completion of 60,000 meters of drilling, a move that encourages the expansion of the project’s known resource base. The final $20 million will be released once Spanish Mountain receives its essential construction and operating permits, aligning Wheaton’s capital deployment with the project’s transition into an active mine.

Accelerating the Path to Production

According to CEO Peter Mah, this strategic investment is a validation of the company’s vision to transition from an explorer to a precious metals developer. The primary objective for the newly acquired funds is the completion of a comprehensive feasibility study, which the company expects to finish within the next 18 months. This study will serve as the foundational document for a final construction decision, currently forecasted for 2028. By securing a non-dilutive financing source, the company aims to preserve shareholder value while maintaining the aggressive timeline required to bring one of the province's largest undeveloped deposits online.