Horizon and Poseidon Merging to Fast-Track the Creation of a New WA Mid-Cap

“We are pleased to partner with Wheaton to deliver our strategy of creating a premier African gold producer, commencing with the construction of our Koné project in Côte d’Ivoire which is set to become West-Africa’s next sizable, long-life, low production cost gold mine,” said Martino De Ciccio , CEO of Montage. “Moreover, both companies share a commitment to delivering strong social and economic benefits to host countries, which underpins our goal of becoming the partner of choice for our local stakeholders. With strong shareholder backing, along with our partnership with Wheaton, we look forward to continuing to grow our presence in West Africa .”

Transaction Key Terms
(All values in US$ unless otherwise noted)

• Gold Stream Upfront Consideration: WPMI will pay Montage total upfront cash consideration of US$625 million (the “Deposit”) in four equal installment payments during construction, subject to certain customary conditions.
• Streamed Metal: WPMI will purchase 19.5% of the payable gold until a total of 400 thousand ounces (“Koz”) of gold has been delivered, subject to adjustment if there are delays in deliveries relative to an agreed schedule, at which point WPMI will purchase 10.8% of the payable gold until an additional 130 Koz of gold has been delivered (the “Second Dropdown Threshold”), at which point WPMI will purchase 5.4% of payable gold for the life of the mine. Payable gold is calculated using a fixed payable factor of 99.9%.
• Production Profile ¹ : Attributable Gold Stream production is forecast to average over 60 Koz of gold per year for the first five years of production, over 47 Koz of gold per year for the first 10 years of production, and over 34 Koz for the life of mine. The Project is forecast to have a 16-year mine life based on reserves, with first production anticipated in early 2027.
• Production Payments: WPMI will make ongoing payments for the gold ounces delivered equal to 20% of the spot price of gold. For the first five years after the Precious Metals Purchase Agreement (“PMPA”) is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 /oz or greater than $2,700 /oz. For example, if spot gold is $3,200 per ounce, Wheaton’s production payment would be $675 per ounce, equating to 21% of the spot price. This price adjustment mechanism expires on the fifth anniversary of the PMPA, after which the production payment will be equal to 20% of the spot price going forward.
• Secured Debt Facility : WPMI has also provided Montage with a secured debt facility of up to $75 million to be allocated to project costs, including cost overruns.
• Incremental Reserves and Resources ¹ : The addition of the Koné Project will increase Wheaton’s total estimated Proven and Probable Mineral gold reserves by 0.62 million ounces (“Moz”), Measured and Indicated Mineral gold resources by 0.05 Moz and Inferred gold resources by 0.02 Moz.
• Other…