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KGL Resources (ASX:KGL) is up 25% on news it has entered into a US$300 million precious metals purchase agreement (PMPA) to help fund construction and development of the Jervois copper project in the Northern Territory.
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The PMPA or “streaming arrangement” is with Wheaton Precious Metals International, a wholly owned subsidiary of Canadian firm Wheaton Precious Metals Corp.
The funding provides a US$275 million “stream” upfront consideration and US$25million contingent cost overrun.
Of the US$275 million US$32 million will be available prior to any construction expenditure, while US$243 million will be available in four tranches following achievement of certain construction expenditure milestones.
KGL’s CEO, Sam Strohmayr, said with the necessary development and mining permits in place, the PMPA represents a major step forward towards development of the project, positioning the company to become the next meaningful Australian copper producer.
“This partnership with Wheaton is the culmination of a significant amount of work and collaboration by KGL, our advisors and the Wheaton team,” he said.
“This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production. The near-term availability of the early deposit ensures we can maintain our development schedule, and we are now on the cusp of breaking ground on Australia’s next major copper mine.”
KGL’s Chairman, Jeff Gerard, said this is Wheaton’s first streaming transaction in Australia and follows its entry into a streaming agreement in respect of BHP’s portion of the Antamina mine, announced in February 2026.
“We are delighted to secure this significant capital commitment from a leading global precious metals streaming company as a major cornerstone partner in our financing strategy for the Jervois Project,” Mr Gerard said.
“Our advisors ran a global process and the Wheaton proposal was the most attractive on several fronts and suitable for our needs to finance Jervois.”
KGL is in the process of finalising the scope and cost of the process plant construction contract, updating the production schedule, providing for price escalation and incorporating changes resulting from movements in commodity prices.
KGL expects both overall project capital costs and revenue forecasts to increase and will provide an update by May 2026.
KGL is up 25% to 26.3¢. Mkt cap $161.8M.
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