Canadian streaming company Wheaton Precious Metals said on Thursday that it had acquired a gold stream worth $670-million on the Spring Valley project in Nevada, following an agreement with Waterton Gold.

The deal, one of Wheaton’s largest recent transactions, strengthens its North American portfolio with exposure to a large-scale, low-cost heap-leach gold project now fully funded for construction.

Wheaton’s wholly owned subsidiary will pay the upfront consideration in installments as conditions are met. Under the terms, Wheaton will receive 8% of payable gold until 300 000 oz have been delivered, and 6% thereafter for the life-of-mine. First production is expected in 2028, with attributable output averaging 29 000 oz/y over the first five years.

Wheaton will make ongoing payments equal to 20% of the spot gold price until the initial deposit is recovered, and 22% thereafter.

“Wheaton is delighted to support one of our existing partners, Waterton, as they advance the Spring Valley project,” said CEO Randy Smallwood. “Spring Valley aligns perfectly with our commitment to investing in high-quality, value-accretive assets.”

President Haytham Hodaly added that the project “meets all the criteria of our rigorous due diligence process, from scale to margins to exploration upside".

Waterton executive chairperson Isser Elishis said Wheaton’s investment meant the project was now fully funded with $1.3-billion in committed capital, adding that early site works were under way and full construction would start in 2026.

As part of the agreement, Wheaton would also provide a cost overrun facility of up to $150-million and receive corporate guarantees and asset security from Waterton and its subsidiary Solidus Resources.

Wheaton said it would finance the deal from its $1-billion in cash, together with a $2-billion revolving loan facility and $500-million accordion, while maintaining flexibility for further acquisitions.

Located in Pershing county, Spring Valley is fully permitted and expected to become Nevada’s next major gold mine, with a ten-year mine life based on reserves of 0.31-million ounces of gold at 0.43 g/t.