KGL Resources (ASX:KGL) has received the second US$16 million ($22.99 million) instalment from Wheaton Precious Metals International (NYSE:WPM).
The payment follows satisfaction of applicable conditions, including Wheaton’s Foreign Investment Review Board (FIRB) approval and evidence of early works expenditure at the Jervois Copper Project in the Northern Territory.
Together with the first US$16 million payment received in June 2026, KGL has now collected the full US$32 million early deposit under their precious metals purchase agreement (PMPA) prior to the start of construction at Jervois.
Under the PMPA announced in April 2026, the company remains eligible for a further US$243 million in four equal tranches over the project construction period, subject to satisfying applicable conditions.
The Wheaton PMPA also includes a US$25 million contingent cost-overrun facility, taking the potential funding to US$300 million.
The arrangement relates to a portion of Jervois’ gold and silver by-products, with copper production remaining fully unencumbered.
CEO Sam Strohmayr says the payment represents another ‘clear’ execution milestone for the Jervois Project.
“With the project fully funded through construction and into production and enabling works underway, our focus is firmly on progressing the final investment decision and safely delivering the Jervois Project,” Strohmayr says.
Following completion of KGL’s $300 million equity raising in July 2026, the Wheaton package and existing cash provide funding required to advance Jervois through construction and into production.
The Jervois Project has an initial 10-year mine life and is expected to produce approximately 30,000 tonnes of copper per annum at steady state, together with silver and gold by-products.
KGL Resources is a mineral explorer and developer focused on advancing its flagship Jervois Copper Project in the Northern Territory.
Write to Paula Fabe at Mining.com.au
Main image: KGL Resources
